Centennial College Retirees Association (CCRA)


CAAT Pension Plan - Inflation protection increase for 2017

The CAAT Pension Plan’s inflation protection rate for 2017 will be 1.01%. The increase takes effect January 1, 2017.

This inflation protection increase applies to pensionable service earned after 1991, and is applied to pensions, bridge benefits, and survivor pensions in payment, as well as deferred pensions.

If you retired in 2016, the increase to your pension starting in 2017 will be pro-rated to reflect the months in 2016 your pension was paid.

Inflation protection is cumulative. The increases previously applied to your lifetime pension remain a permanent part of your pension, and the additional increase in 2017 is added to the previous year’s lifetime pension.

How we calculate inflation protection
The inflation protection formula compares the year-over-year percentage change in the average Consumer Price Index (September to September increases), then calculates 75% of this amount. The result is the inflation protection rate applied to your pension as shown above. The maximum inflation protection rate in a given year is 8%.

Two periods of service are used in the calculation:

  • On service earned between 1992 and 2007, inflation protection increases are guaranteed and will be granted indefinitely.
  • On service earned after 2007, the granting of increases is conditional (granted when the Plan is fully funded). Read the Funding Policy for more.

As a result of the January 1, 2016, filed actuarial valuation, conditional inflation protection increases will be granted annually until January 1, 2019. Any increases beyond 2019 will be determined based on future filed actuarial valuations and the Plan’s funding level at that time.

Note: For service earned in the CAAT Pension Plan before 1992, no inflation protection increases are applicable. The last scheduled “ad hoc” inflation protection increase was January 1, 2014. If you earned service prior to 1992, your pension will not decrease as a result of the end of ad hoc pre-1992 inflation increases.

We’ll be in touch
In the spring, you’ll receive your Retired Member Annual Statement. This important document provides you with a breakdown of your pension amount and any amounts that are deducted (e.g. for income tax).

Your 2017 Retired Member Annual Statement will include our standard Pension Confirmation form for you (or the holder of your valid Power of Attorney for Property) to use to keep us up to date so that your pension payments continue. Be sure to complete the Pension Confirmation form as soon as you receive it, and mail it back to the CAAT Pension Plan in the envelope provided, to ensure no interruption in your pension payments.

For more information, visit the Inflation Protection page or learn more about your Retired Member Statement and the Pension Confirmation form.