Returning to work after retirement

Let's say that once you retire, you decide to return to work for a new employer or become self-employed. If you return to work for an employer that doesn't participate in the CAAT Plan, you can combine your employment income with your CAAT Plan pension. However, once you begin receiving your CAAT Plan pension, or you reach your normal retirement date, you can no longer transfer your CAAT Plan service to another employer's plan.

If you return to work for an employer participating in the CAAT Plan, you have different options depending on your age and employment situation.

If you are under 65 and return to full-time employment, your pension may stop depending on the design of the Plan your employer participates in. Once you stop receiving your pension, you will resume participating in the Plan and making contributions.

If you are over 65, you have the option to suspend your retirement benefits and resume your contributions to the Plan.

If you are in one of these situations, contact your employer's human resources department as soon as you return to work.

The possible repercussions of returning to work

Do you intend to work during retirement? In this case, we recommend determining what will happen to your other income. Your employment income can affect the retirement benefits paid by the government. Let's say you receive your CAAT Plan pension, Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits, and employment income.

It is then possible that by the time you are entitled to Old Age Security (OAS), at age 65, your total income exceeds the OAS threshold. If this is the case, the OAS benefit may be subject to a "clawback."

Your employment income can also affect the income tax you pay each year. Depending on your circumstances, you may want to adjust the amount of tax deducted from your paycheck or pension. To do this, you can complete a "Personal Tax Credits Application" form (contact the Canada Revenue Agency).

Although age 65 is considered the "normal retirement age," you can continue to work, contribute to the Plan, and thus increase your pension after this age. On November 30 of the year of your retirement, you will then receive a pension calculated based on a greater number of years of service. On your 71st birthday, you will have to stop contributing to the Plan and will begin receiving your pension on December 1 of that same year, even if you continue to work.