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In-Year Reporting:
Retirement, Termination,
and Death notification
April 2, 2015
3
Employer Education Sessions
Employee Enrolment
Contributions
Data Reporting
Publications / Resources
Retirement
5
Retirement – Estimates
 Pension estimates help members plan for
retirement
 Form must be signed by the member requesting
the estimate
6
Retirement – Process
 Employer completes a Pension Application and
submits it to the CAAT Plan via S-DOC, mail, or fax
 Please inform members of their eligibility to group
insurance benefits
 The CAAT Plan will calculate the member’s
benefit and any applicable reductions
 The CAAT Plan will mail a Retirement Package
directly to the member
7
Retirement – Process Continued
 The member will return the completed
Retirement Option Document to the CAAT offices,
with any supporting documentation
 The employer will receive a copy of the signed
Option Document for your records
 The CAAT Plan will set up the member’s monthly
payment
 Pension Revisions have a threshold of $150 for
Earnings and 2 working days for Service.
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Vacation Pay
 Pay for accrued vacation
 May be pensionable in the year of retirement or
termination, if chosen by the member
 Vacation pay is not pensionable in the event of a
member’s death
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Retirement Example – Full-time Administration
Retirement Date:
November 30, 2014
Last Day Worked:
Date of Birth:
November 12, 2014
July 12, 1951
Annual Salary Rate:
Pensionable Earnings:
Vacation Pay:
$68,000 (bi-weekly)
$59,000
$4,000
Start Date of PP for year:
Unpaid LOA:
December 22, 2013
February 3 – 6, 2014
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Calculations
 CAAT Contributions Calculator Example
 Pension Adjustment Calculator
https://www.caatpension.on.ca/en/tools/pa_calculator
• CAAT Pension Service Calculator
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Retirement - Example
 Pension Application
Quiz
Termination
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Termination
When a member leaves employment at an Ontario
College, or related employer, before being eligible
for an immediate pension.
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Termination – Extension of Membership
 Members remain in the CAAT Pension Plan for 24
months after terminating employment
 When a member terminates employment at the
employer , they are not terminating from the
CAAT Pension Plan
 A member who is employed at more than one
employer must terminate employment at all
employers before being eligible for a benefit
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Extension of Membership Options
During the 24 month extension
 Enroll at another CAAT employer
 Transfer to another employer’s pension plan
 Start pension if become retirement eligible
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Extension of Membership Options
After the 24 month extension
 Deferred Pension
 Commuted Value Transfer
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Extension of Membership Options
 What if a member becomes retirement eligible
during the 24 month extension of membership
period?
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Small Benefit
Member’s benefit is converted to a small pension
payout if:
 Annual Pension without any applicable reduction is
less than 4% of the YMPE in the year of termination of
membership
 Commuted Value is less than 20% of the YMPE in the
year of termination of membership
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Small Benefit Threshold
2015 YMPE:
$53,600
Annual Pension
4% of $53,600:
$2,144 (or $178.67 per month)
Commuted Value
20% of $53,600:
$10,720
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Small Benefit Example
2015 YMPE:
$53,600
Calculated Pension
$1,200 ($100 per month)
Calculated Commuted Value
$15,000
Therefore, the Small Benefit rule applies
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Termination – Process
 Employer completes a Termination Benefit
Application and submits to the CAAT Plan via S-DOC,
mail or fax
 The CAAT Plan will mail a letter directly to the
member explaining the 24 month extension
 At the end of the 24 month EOM period, CAAT will
mail an Option Document directly to the member
 Member completes the Option Document and
forwards it, along with applicable documentation, to
the CAAT Plan
 The CAAT Plan processes the benefit payment
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Vacation Pay – Reminder
 Pay for accrued vacation
 May be pensionable in the year of retirement or
termination, if chosen by the member
 Vacation pay is not pensionable in the event of a
member’s death
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Termination Example – Part-time
Termination Date:
Date of Birth:
November 5, 2014
Annual Salary Rate:
Pensionable Earnings:
Vacation Pay:
$50,000
$13,400
Start Date of PP for year:
Contract #1 Admin:
December 27, 2013
Contract #2 Support 8hrs:
206 hours, $24.66/hr
March 3, 1979
$0
320 hours, $26/hr
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Termination - Example
 Pensionable Service Calculation - OTRFT
 Annualized Contributions OTRFT - standard FTE
 Termination Benefit Application
Quiz
Death
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Death
All Plan members are entitled to some form of
survivor benefit for their eligible spouse or
designated beneficiaries or estate when they die.
This includes members who are on an approved
leave of absence or disability leave.
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Death – Survivor Benefits
 Eligible Spouse
 Eligible Children
 Designated Beneficiary
 Estate
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Death – Process
 Employer completes a Death Benefit Application
and submits it to the CAAT Plan via S-Doc, mail or
fax
 Employer also submits proof of death at the same
time
 The CAAT Plan will calculate the survivor benefits
based on member’s marital status and eligible
children
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Death – Process
 The CAAT Plan will mail the pre-retirement death
option package to the employer, who in turn will
forward the package to the member’s eligible
spouse or designated beneficiaries
 The eligible spouse or designated beneficiaries
will forward the completed signed Option
Document and the supporting documentation to
the CAAT Plan
 The CAAT Plan will process the payments to the
eligible spouse or designated beneficiaries
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Vacation Pay
 Vacation pay is not pensionable in the event of a
member’s death
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Death
 Death Benefit Application form is similar to the
retirement application form except that the Pension
Adjustment is not required in the member’s year of
death.
 Death Certificate has to be submitted with the Death
Benefit Application form.
Quiz
35
Miscellaneous
 Change in marital status
 Marriage Breakdown
 Changes to Designated Beneficiaries
 Service Purchases
 Ensure they are complete before retirement, termination
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Things to look out for that may delay the process
 Marriage Breakdown - #1 reason for delay
 Termination vs. Retirement
 1st year’s earnings for Highest Average
Pensionable Earnings (HAPE) in the Application
form.
 Incorrect Contributions and Pension Adjustment
(PA)
 Submitting proof of age