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Inflation adjustments

CAAT’s DBplus plan design provides two types of protection against inflation to enhance the value of your pension before and in retirement, conditional on the financial health of the Plan.

While you are working

While you are working, the pension you have built in DBplus will receive annual enhancements based on the year-over-year increase in the Average Industrial Wage (AIW) in Canada, conditional on the funded status of the CAAT Plan.

The AIW increase for 2020 is 2.25%* and will be applied to all DBplus benefits earned in 2019, as well as to accrued benefits for members on an extension of membership.

*The calculation is 100% of the increase in the July 2018-June 2019 average AIW over the July 2017-June 2018 average AIW.

After you retire

Once you retire, annual inflation protection increases of 75% of the year-over-year change in the average Consumer Price Index will be applied to your pension, conditional on the funded status of the Plan.

The pension for a surviving spouse receives the same inflation protection increases as member pensions.

Conditional enhancements are prescribed in the CAAT Plan Funding Policy

Conditional benefits, including inflation and AIW enhancements, are made when the Plan’s funded status permits. This design helps the Plan manage through periods of volatility and considers intergenerational equity, a Plan principle together with benefit security.

Read more about the CAAT Funding Policy.

Estimate a DBplus Pension

Get a quick and easy estimate of how much lifetime retirement income members will get from contributions to DBplus.

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