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Retirement, Termination,
and Death notification
Webinar
Best practices
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Retirement – Estimates
Pension estimates help members plan for
retirement
New form for members http://www.caatpension.on.ca/en/members/tools
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
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
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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
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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, 2013
Last Day Worked: November 12, 2013
Date of Birth: July 12, 1951
Annual Salary Rate: $68,000 (bi-weekly)
Pensionable Earnings: $59,000
Vacation Pay: $4,000
Start Date of PP for year: December 22, 2012
Unpaid LOA: February 3 – 6, 2013
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Retirement - Example
PensionApplication.pdf
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Calculations
CAAT Annualized Conts FT biweekly
2013_0429.xls
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Interactive
Questions
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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
A member who is employed at more than one
employer must terminate employment at all
employers before being eligible for a benefit
When a member terminates employment at
the employer , they are not terminating from
the CAAT Pension Plan
Members remain in the CAAT Pension Plan
for 24 months after terminating employment
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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 turns 55 during the 24
month extension of membership?
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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 Current Year’s YMPE
Commuted Value is less than 20% of the Current
Year’s YMPE
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Small Benefit – Example
2013 YMPE: $51,100
Annual Pension
4% of $51,100: $2,044
$1,200
Commuted Value
20% of $51,100: $10,220
$15,000
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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
Once the 24 months has passed, CAAT will
mail an Option Document directly to the
member
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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: July 5, 2013
Date of Birth: March 3, 1979
Annual Salary Rate: $50,000
Pensionable Earnings: $13,400
Vacation Pay: $0
Start Date of PP for year: December 27, 2012
Contract #1 Admin: 320 hours, $26/hr
Contract #2 Support 8hrs: 206 hours, $24.66/hr
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Termination - Example
Termination Benefit Application.pdf
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Calculations
CAAT pensionable service calculation
OTRFT 2013_0627.xls
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Interactive
Questions
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Pre-retirement
Death
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Death
All Plan members are entitled to some form of
survivor benefit for their spouse or beneficiaries
when they die.
This includes members who are on an
approved leave of absence or disability leave.
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Death – Survivor Benefits
Spouse
Children
Beneficiary
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Death – Process
Employer completes a Death Benefit
Application and submits to the CAAT Plan via
S-Doc, mail or fax
Employer also submits proof of death
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 a package to the
employer on behalf of the member’s survivor
The survivor and employer will forward the
signed Option Document and supporting
documentation to the CAAT Plan
The CAAT Plan will make payments to the
survivor
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Vacation Pay
Vacation pay is not pensionable in the event
of a member’s death
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Death – FT Example Administration
Date of Death: August 15, 2013
Last Day Worked: August 14, 2013
Date of Birth: January 3, 1968
Marital Status: Married
Annual Salary Rate: $50,000
Pensionable Earnings: $35,000
Start Date of PP for year: December 26, 2012
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Death - Example
DeathBenefitApplication.pdf
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Interactive
Questions
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Miscellaneous
Change in marital status
Marriage Breakdown
Beneficiary Changes
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)
Incorrect Contributions and Pension
Adjustment (PA)
Submitting proof of age
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Questions about this webinar?
Irene Dailide
[email protected]
647.837.3013
General inquiries
[email protected]
Phone: 416.673.9000
Toll Free: 1.800.355.2228
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