When most Canadians talk about their retirement plans, often a large part of the conversation focuses on the amount of income they need to retire comfortably. The investment products, savings arrangements, and streams of income are all geared towards a dollar amount in their account. And this is for good reason; no one wants to run out of money or outlive their savings in retirement. But, as a member of a defined benefit pension plan like the CAAT Plan, you can breathe a sigh of relief, because your pension is so much more than a dollar balance; it’s income for life.

Your lifetime pension amount is more than a balance

A defined benefit (DB) pension is a unique type of retirement income plan. With other retirement savings plans like defined contribution pension plans or individual or group RRSPs, your retirement income relies on the amount of money you have in your account. With a DB pension, you get a secure retirement income for the rest of your life.

Here are a few other reasons why a plan like CAAT offers retirement income security and peace of mind.

Plan your future with confidence

With a CAAT pension in your future, you don’t have to worry about market fluctuations and performance or let investment decisions get in the way of your planning. Your pension is based on a formula, and you can see your pension grow each year on your annual statement and get an estimate of your retirement. This lets you confidently predict your annual income during retirement, so you can make your plans regardless of market conditions. With other forms of retirement income, your account balance may be susceptible to a bad market cycle and fluctuate as a result.

Worry-free Saving

CAAT takes care of investments, so you don’t have to worry. The contributions you and your employer regularly make to the CAAT Plan are invested by the Plan’s investment professionals, with a focus on investing for the long term. CAAT’s investment portfolio contains diverse asset classes which help reduce risk from economic shocks, helping keep your pension plan safe, secure, and sustainable.

A lifetime income

When you retire with a pension from the CAAT Plan, you’ll receive retirement income that is paid every month for the rest of your life. Not only that, but your CAAT Pension Plan also comes with conditional inflation protection and survivor benefits at no additional cost. Most Group RRSPs and personal savings plans do not.

Inflation protection increases, when granted, are added to your CAAT lifetime pension each year—in line with increases to the consumer price index and subject to CAAT’s Funding Policy—and the increased amount becomes your new lifetime pension. Your pension also provides a lifetime pension for your surviving eligible spouse equal to 60% of the pension you were receiving at your death (or 75%, if you chose that option when you retire), ensuring they’re taken care of.

A Balance vs a Lifetime Pension

The differences between a lifetime DB pension like CAAT, and other employer-sponsored retirement savings arrangements that rely on an account balance are quite staggering when you look at the details.

If you have more questions about your retirement with the CAAT Pension Plan, visit our Member Resources page, contact us using secure messaging through your My Pension account or call us at 1-866-350-2228.