the slides

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In-Year Reporting:
Retirement, Termination,
and Death notification
April 7, 2016
3
Employer Education Sessions
Employee Enrolment
Contributions
Data Reporting
Publications / Resources
Retirement
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Retirement – Estimates
 Pension estimates help members plan for retirement
 Form must be signed by the member requesting the
estimate
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Retirement – Process
 Employer completes a Pension Application and
submits it to the CAAT Plan via S-DOC, mail, or fax
 The CAAT Plan calculates the member’s pension and
mails the retirement package directly to the member
 The member returns the completed Retirement
Option Document with any supporting
documentation to the CAAT Plan.
 The CAAT Plan sets up the member’s monthly
payment
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Retirement – Process
 We recommend sending retirement applications at
least 3 months in advance of retirement date
 Refer to the payment schedule on our website
 Pension revisions have a threshold of $150 for
earnings and 2 working days for service
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Vacation Pay
 Pay for current year accrued vacation
 May be pensionable in the year of retirement or
termination, if requested by the member
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Retirement Example – Full-time Administration
Retirement Date:
April 30, 2016
Last Day Worked:
Date of Birth:
Annual Salary Rate:
Payroll schedule
April 22, 2016
July 12, 1951
$68,000
Bi-weekly
Pensionable Earnings:
Vacation Pay:
$22,800
$4,500
Start date of pay period for year:
Unpaid LOA:
December 22, 2015
February 3 – 6, 2016
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Retirement - Example
 Pension Application
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Calculations
 Pension Adjustment Calculator
 CAAT Pension Service Calculator Example
 CAAT Contributions Calculator Example
 Link:
https://www.caatpension.on.ca/en/employers/calculators
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
 Start working 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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Termination – Process
 Employer completes a Termination Benefit Application
and submits to the CAAT Plan via S-DOC, mail or fax
 The CAAT Plan mails a letter 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 current year accrued vacation
 May be pensionable in the year of retirement or
termination, if requested by the member
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Termination
 Termination Benefit Application




Pension Adjustment Calculator
CAAT Pension Service Calculator
CAAT Contributions Calculator
Link: https://www.caatpension.on.ca/en/employers/calculators
Small pension
threshold
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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 retirement or
termination of membership
 Commuted Value is less than 20% of the YMPE in the
year of retirement or termination of membership
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Small Benefit Threshold
2016 YMPE:
$54,900
Annual Pension
4% of $54,900:
$2,196 (or $183 per month)
Commuted Value
20% of $54,900:
$10,980
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Small Benefit Example
2016 YMPE:
$54,900
Calculated Pension
$1,200 ($100 per month)
Calculated Commuted Value
$15,000
Therefore, the Small Benefit rule applies
Quiz
Death
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Pre-Retirement 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.
 This also includes members on EOM status and
former members with a deferred pension
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Death – Survivor Benefits
 Eligible Spouse
 Eligible Children (children under age 18)
 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 submits proof of death with the death
application form
 The CAAT Plan will calculate the survivor benefits
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Death – Process
 The CAAT Plan will mail the pre-retirement death
option package to the employer to forward to the
member’s eligible survivor
 The eligible survivor will forward the completed,
signed Option Document and the supporting
documentation to the CAAT Plan
 The CAAT Plan will process the payments
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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.
Quiz
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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