Discover how pension rules differ by jurisdiction
Different provinces may have different minimum requirements, based on their pension legislation. The CAAT Plan provisions outlined on this site are based on the Ontario Pension Benefits Act. If you report to work in a province other than Ontario, check below to see what benefits may be impacted by different legislation.
For the applicable definition of spouse, please refer to the description under the province of your employment. Note that the definition of spouse that applies to the Federal jurisdiction also applies to the Northwest Territories, Nunavut and Yukon.
A small pension is one that falls below certain defined thresholds. If you are found to have a small pension at the time of payout, you will be entitled to a one-time lump sum payment of the commuted value of your defined benefit pension, instead of a monthly stream of lifetime payments.
You may have the option to keep your small pension with CAAT if:
Different jurisdictions may have different minimum requirements, based on their pension legislation. The small pension rule that applies to your benefits is determined based on where you reported to work when you stopped working with your CAAT employer. Check below for the small pension thresholds that CAAT applies for each Canadian jurisdiction.
Choose the jurisdiction where you report to work to see the different minimum requirements that may apply to you.
Definition of spouse
Definition of small pension
The commuted value of the pension is less than or equal to 20% of the Year’s Maximum Pensionable Earnings in the calendar year that the commuted value was most recently determined.
The person who is married to the member or who is party to a void marriage with the member; or “Common-law partner”: The person who is cohabiting with the member in a conjugal relationship at the relevant time, having so cohabited with the member for at least one year.
The commuted value of the pension is less than 20% of the Year’s Maximum Pensionable Earnings in the calendar year that membership ends, or the member dies.
The annual pension at the member’s normal retirement age is not more than 4% of the Year’s Maximum Pensionable Earnings in the year the benefit will be paid,
OR
The commuted value of the pension is less than 20% of the Year’s Maximum Pensionable Earnings in the year the benefit will be paid.
“Common-law partner”: a person who is not married to the member but has cohabited with him or her in a conjugal relationship continuously for a period of at least 2 years, immediately before the relevant time.
The adjusted commuted value is less than 40% of the Year’s Maximum Pensionable Earnings at the end of any applicable extension of membership period, as long as the member is under age 65.
The adjusted commuted value calculation takes into account the member’s age on December 31 of the year employment is terminated.
“Cohabiting partner”: The person who is cohabiting or has cohabited with the member within the preceding year and has cohabited continuously with the member in a conjugal relationship for: (i) in relation to a member who has a spouse, at least three years, provided the person is not the spouse of the member; or (ii) in relation to a member who does not have a spouse, at least one year.
The annual pension is less than 4% of the Year’s Maximum Pensionable Earnings in the year plan membership ends, or the member dies
The commuted value of the pension is less than 10% of the Year’s Maximum Pensionable Earnings in the year plan membership ends, or the member dies.
the person who is married to the member or
The annual pension at the member’s normal retirement date is not more than 4% of the Year’s Maximum Pensionable Earnings in the year the active membership ends
The commuted value of the pension is less than 20% of the Year’s Maximum Pensionable Earnings in the year in the year the active membership ends.
The commuted value of the pension is less than 20% of the Year’s Maximum Pensionable Earnings in the year the active membership ends.
Ontario rules apply
The annual pension at the member’s normal retirement date is not more than 4% of the Year’s Maximum Pensionable Earnings in the year active membership ends
The commuted value of the pension is less than 20% of the Year’s Maximum Pensionable Earnings in the year active membership ends.
The birth or adoption of a child during a marriage, civil union or conjugal relationship prior to the current period of conjugal relationship may qualify the person as a spouse.
The commuted value of the pension is less than 20% of the Quebec Pension Plan Year’s Maximum Pensionable Earnings in the year the active membership ends.
Alternate payment options
If your jurisdiction of employment is Quebec, your pension includes some additional options you may choose. You must contact CAAT Pension Plan if any of these options apply to you and you want to select them.
10-year guarantee – chosen at retirement
You can choose a minimum payment guarantee of 10 years (120 months) instead of the CAAT default of 5 years (60 months).
Note: Your CAAT pension is paid for as long as you live. The guarantee is relevant if you die within 10 years of starting your pension.
Portability
You can transfer the commuted value of your pension out of the CAAT Pension Plan until you reach age 55.
Alternate pension payment options
These options enable you to get some of your pension paid to you before you retire, if eligible. If you choose any of these options, your pension will be permanently lowered to reflect the amount of the alternate payment option.
Advance on retirement savings – Lump Sum
A lump sum cash payout of up to 40% of the year’s maximum pensionable earnings under the QPP.
Temporary pension payment
A temporary pension (annual total up to 40% of the year’s maximum pensionable earnings under the QPP), paid until you turn age 65.
Phased retirement - advance lump sum with agreement
Replace part of your pension with a lump sum payment, while you are working.
The commuted value of the pension is less than or equal to 20% of the Year’s Maximum Pensionable Earnings in the year that the payment occurs
If the member is eligible to start their pension immediately, the maximum annual pension is 4% (or less) of the Year’s Maximum Pensionable Earnings in the year the payment occurs.