How is the CAAT Pension Plan integrated with the Canada Pension Plan at retirement?
The intent is that when you add your Canada Pension Plan (CPP) and CAAT Plan pensions together, you will receive a retirement income of approximately 2% of your average earnings for every year of Pensionable Service in the Plan. For earnings up to the Year’s Maximum Pensionable Earnings (YMPE) – the earnings limit up to which you contribute to the CPP – you will get a benefit of 1.3% from the CAAT Pension Plan. The CPP benefit is equal to about 0.7%. When you add the two together, you get 2%. For earnings above the CPP limit, no CPP is payable. Therefore, the CAAT Pension Plan benefit is equal to the full 2%. This is how you get a 2% per year factor when you add your CAAT Plan pension and your CPP pension together.
The intent is that when you add your Canada Pension Plan (CPP) and CAAT pensions together, you will receive a retirement income of approximately 2% of your average earnings for every year of Pensionable Service in the Plan. For earnings up to the Year’s Maximum Pensionable Earnings (YMPE) – the earnings limit up to which you contribute to the CPP – you will get a benefit of 1.3% from the CAAT Pension Plan. The CPP benefit is equal to about 0.7%. When you add the two together, you get 2%. For earnings above the CPP limit, no CPP is payable. Therefore, the CAAT Pension Plan benefit is equal to the full 2%. This is how you get a 2% per year factor when you add your CAAT Plan pension and your CPP pension together.
