Projected to age NN
This is the amount that would be payable to you at the retirement date shown above, for life.
Year one accrual
This is the amount of pension you would earn in one year of membership, plus cumulative Average Industrial Wage (AIW) enhancement increases up to your retirement date. Note that any purchase amount is not shown.
How your pension is calculated
How to read this table
This table shows the total pension earned at the end of each calendar year of membership. Each row shows information specific to the year in Column "A". The first year shown is the current year, or the year of enrolment if you entered a different date.
- Column “A”: The year in which the pension was earned.
- Column “B”: Your earnings for the year, on which your contributions are calculated.
- Column “C”: Your contributions for the year (including any purchase, if relevant) calculated as a percentage of the earnings in column “B”. Note that on line for the year NNNN, the contributions include your estimated purchase amount of $nn,nnn.
- Column “D”: The guaranteed base pension earned in the year.
- Column “E”: The AIW enhancement applicable for the total annual pension at the end of the year. It applies to the current year’s guaranteed base pension, and the total annual pension accrued to the end of the previous year (in column “F”, one line above). The AIW enhancement starts the year after the first year of membership).
- Column “F”: The total lifetime pension accrued at the end of the year. The value in column “F” is equal to: column “D” + column “E” + previous year’s column “F”
- Your total lifetime pension at the end of any year is the amount in column “F”.
To see the total annual pension at retirement, refer to the last row in column “F”, which shows the annual pension on that retirement date (note that if you retire before age 65, the pension would be reduced, to reflect the fact that you are receiving it for longer. The chart does not consider any reduction that could be applied).
Understanding the output
Tabs
The DBplus Value Tool provides data in two tabs:
- Lifetime pension at retirement age – this is based on the pension you would accrue at your normal retirement date (the end of the month you reach age 65). If you chose a different retirement date in the “Calculation Assumptions” panel, the graph uses that date instead. This tab will also show any purchase estimates you make.
- Year one accrual – this is based on the pension you would accrue at your retirement date, based on one year of membership.
The “Annual Pension” graph shows the estimated total annual pension.
There are two parts to the total annual pension:
- Guaranteed base pension: This is the amount earned each year based on total contributions and the Annual Pension Factor ("APF"). It is calculated using the pension formula: APF x (member contributions + employer contributions).
- AIW Enhancement: Your total annual pension increases each year you work, based on the Average Industrial Wage (AIW) index. The AIW Enhancement is applied to the total annual pension you accrued to the end of the previous year. The AIW enhancement starts in year two of membership, and is cumulative. It is not applied in the year of retirement.
The “Value Comparison” graph illustrates the value of the pension earned in DBplus.
This graph shows your total contributions compared to the cumulative value of your pension payments (the annual pension shown in the “Annual Pension” graph).
Your total annual pension is the guaranteed base pension, plus AIW enhancement while you were working. In retirement, your pension will increase with annual post-retirement inflation protection. In addition, your pension includes survivor benefits, payable to your surviving spouse for their lifetime. DBplus members see excellent value for their contributions.
Assumptions used in the “Value Comparison” graph:
- The DBplus Value Tool assumes that you work up to retirement, and start your pension at age 65. Note that you can choose a different age in the “Calculation Assumptions” panel.
- The DBplus Value Tool assumes your pension is paid to age 90. However, your actual pension is paid for life, no matter how long you live: age 90 is shown for illustration purposes only.
- The DBplus Value Tool assumes a survivor pension is paid until the third December following the assumed death of the member at age 90. However, the actual survivor pension would be paid to your eligible surviving spouse no matter how long they live.
Purchases
If you enter a purchase amount in the "Calculation assumptions" panel, you can see the resulting pension in the "Annual pension" graph, and the impact to the value of your pension in the "Value Comparison" graph. To see the impact of the purchase on your lifetime pension, make sure both the "Show purchase" and the "Show lifetime pension" toggles are switched to "ON".
Assumptions Used
Data you entered
Date of birth: YYYY-MM-DD
[Weekly][Annual] Earnings: $NN,NNN
Number of weeks worked per year: [NN]
Number of hours worked per year: [NN]
Retirement assumptions
Retirement age: NN
Spouse: Yes/No
Employment assumptions
Enrolment date: YYYY-MM-DD
Earnings increase: NN%
Contribution rate assumptions
Employer contribution rate: NN%
Employee contribution rate: NN%
Note, the contribution rate would be set by your employer upon joining DBplus.
Pension Plan assumptions
Early start adjustment:
NN%
This rate can only be determined at your retirement date, and will depend on the Plan's funded status and the Plan terms in effect at retirement.
AIW Enhancement rate:
NN%
This rate would be based on the actual yearly increase to Canada’s Average Industrial Wage and the granting of enhancements is dependent on the Plan’s funded status.
Annual pension factor:
NN%
This rate is currently set at 8.5% but the rate applied to future contributions will depend on the Plan's funded status and Plan terms in effect at the time the contributions are made.
Post-retirement Inflation Protection:
NN%
This rate would be based on the increase to Canada’s Consumer Price Index, and increases are conditional on the Plan's funded status.
Purchase
Purchase amount: $NN,NNN
Date of purchase: YYYY-MMM-DD
Purchase adjustment factor:
NN%
This amount depends on your years from normal retirement at the date of the purchase. If you make your purchase when you are more than 25 years from your normal retirement date the adjustment factor is 100%, i.e. the purchased benefit is equal to the applicable Annual Pension Factor, multiplied by the purchase amount. If you are less than 25 years from your normal retirement date, the 100% adjustment is decreased by 1.4% per year, calculated on a day-by-day basis, reducing the purchased benefit.
Projections, Assumptions, and Limitations
To calculate your estimated future pension, the DBplus Value Tool makes projections based on the data you entered and the assumptions described in “Projections, Assumptions, and Limitations” under the “Help” menu. Results are not reviewed or verified by the CAAT Pension Plan or your employer.
Your pension estimates (including any purchase estimates) are based on the DBplus pension formula, and the data you entered. They are not guarantees of future pension payments. For explanations and definitions, click the “Help” button.
All amounts shown are gross and do not reflect any income tax deductions.
The estimator does not validate that the funds you input for the purposes of the purchase estimate are eligible for purchase.
Amounts are rounded to the nearest dollar.