What is the connection between the Canada Pension Plan and the CAAT Pension Plan?
The CAAT Pension Plan is an integrated plan. This means that the pension formula recognizes the benefits that are provided by CPP. The Plan’s objective is to provide a total pension of 2% of Highest Average Pensionable Earnings for each year of service. Since the CPP benefit is equivalent to about 0.7% of that amount, the CAAT Pension Plan benefit is 1.3% up to the YMPE, the point at which CPP benefits end. Above that point, the CAAT Pension Plan benefit is 2%.
