First stage of your purchase process
DBplus purchases
As a member of the CAAT Pension Plan, you may be able to make a purchase for an eligible period of time.
Review the following scenarios to see if you have eligible periods of time that can be purchased. For each purchase type, you will find details about who contributes, eligible funds you can use for the purchase, timing, and processes.
You can purchase the period of membership with any Canadian registered pension plan if the funds have been transferred to your registered retirement savings account, such as an RRSP. If you were a member of a Canadian Defined Contribution (DC) pension plan and your funds are still in that plan, you can transfer those funds directly to CAAT to purchase additional pension, provided your DC Plan confirms your funds are eligible to transfer.
Who contributes: You are responsible for 100% of the purchase cost. Your employer does not contribute on your behalf.
Eligible funds: The funds for the purchase must come from a registered retirement savings account, such as an RRSP. If your previous membership was in a defined benefit plan, you must have transferred the value of that pension into such an account.
Maximum contribution: The maximum amount you can contribute for the purchase is based on 18% of your T4 earnings for the period you are purchasing, or the amount of funds in your registered retirement savings accounts, whichever is lower.
Timing of purchase: The amount of pension you receive is calculated using the purchase adjustment factor based on how close you are to the normal retirement date.
Purchase process: To start the purchase process, visit the DBplus Purchase Tool and follow the instructions to get an estimate of the cost and the forms you’ll need to complete.
Exceptions
If you were away from work on an approved leave of absence during which you did not contribute to the Plan, you can make a purchase for this period when you return to work.
The contributions are calculated using your deemed earnings during the leave period and the contribution rate in effect during the leave.
Eligible funds: The funds for the purchase must come from a registered retirement savings account, such as an RRSP.
Maximum contributions: The maximum amount you can contribute for the purchase is equal to the total member and employer contributions for the period, up to the allowable limits under the Income Tax Act, or the amount of funds in your registered retirement savings accounts, whichever is lower.
Timing of purchase: The purchase adjustment factor depends on the timing of your purchase:
Purchase process: To start the purchase process, contact your employer's HR department.
Making the purchase during your leave through your employer (if applicable):
If your employer provides Supplementary Unemployment Benefit (SUB) Plan payments, your contributions may be deducted directly from these payments during the leave period. Your pension will continue to grow during your leave.
If you are not entitled to such payments, or do not wish to have contributions deducted from your payments, you can make the purchase when you return to work. The process depends on the timing of your purchase.
Making the purchase within six months after you return to work:
The amount you can purchase is based on your deemed earnings during the period of leave and the contribution rate in effect during the leave.
Making the purchase more than six months after you return to work:
Any time that you:
Any periods of statutory leaves, as defined under the applicable legislation in your jurisdiction of employment. For example, the Employment Standards Act (Ontario) includes:
* Note that pregnancy, adoption, or parental leaves are statutory leaves covered under the Employment Standards Act, but they have different purchase processes. Refer to “Did you take pregnancy, parental or adoption leave resulting from the birth or adoption of a child?” for more information and to find the correct form to get started.
If your jurisdiction of employment is not Ontario, the Employment Standards Act (Ontario) does not apply to you. Contact your employer’s HR to determine if your leave is eligible under the applicable legislation based on your jurisdiction of employment.
To proceed with a purchase, you need a purchase quote from CAAT. To get a quote, estimate your purchase cost using the DBplus Purchase Tool. When your estimate is completed, you can download the purchase application form.
The Purchase Tool will calculate the maximum you can contribute for the purchase and the amount of pension you would receive from it. It even lets you try different purchase scenarios. For example, you can enter an amount lower than the maximum to see how that change affects your purchase.
Review your estimate results, including the Detailed Explanation, so you have an idea of the value of the purchase. This will help you decide if a purchase is right for you. The cost and pension amount shown by the tool are estimates only. The actual amounts will only be calculated when you have completed and submitted the forms that are required to receive a formal quote from the CAAT Pension Plan.
Choose the DBplus Purchase Tool that’s right for your situation:
Use this tool if you are earning a pension under the DBplus design and have eligible periods to purchase.
To request a purchase quote from the CAAT Pension Plan, you’ll need to download a purchase application form from the DBplus Purchase Tool.
After you complete your estimate, click on “Detailed Explanation” below the graph. It contains more information and links to the forms. Scroll down to the header entitled “Do you wish to proceed with the purchase?” Choose your form based on the type of period you will be purchasing.
Proceed to Return stage.
Options, estimates and applications
Apply, submit and receive
Forms, financials and finish
Click the title to read the article or use the “visit the support centre” button for more.
The amount of pension you receive as a result of the purchase depends on a “purchase adjustment factor” that is applied to all DBplus pension purchases.
Because purchases are made in respect of specific periods of time, the cost will vary.