Working Beyond 65
It is no longer mandatory to retire at age 65. In accordance with Bill 211 which ended mandatory retirement, there will be several decisions that you will be required to make if you wish to continue working. The following sections provide you with some information to help guide your decision:
- Sun Life Benefits
- Canada Pension Plan
- WSIB Coverage
- CAAT Pension Options
- Maximum age in Plan changes
Sun Life Benefits
After Bill 211 passed, certain group insurance benefits continue for employees who wish to remain working beyond age 65.
The Group Insurance Benefits that will be continued are:
- Basic Life
- Accidental Death and Dismemberment
- Extended Health Care (including Vision and Hearing Care)
- Dental Care
The premium sharing arrangements identified in the Academic and Support Staff Collective Agreements as well as the Terms and Conditions of Employment for Administrative Staff will apply to the above benefits.
For all employee groups, the following benefits will NOT be continued beyond age 65:
- Supplemental Life
- Employee Pay-All Optional Life
- Spousal Supplemental Life (where available)
- Dependent Life
- Critical Illness Insurance (where available)
- Long Term Disability (ceases at age 64 and 6 months for all employees)
The group insurance contract allows an exception to be made for Academic employees who may continue all of their elected benefits, excluding LTD, if actively employed until the August 31 following their 65th birthday. After that time, the Academic employee will have coverage on the same basis as Administrative and Support Staff.
It should be noted that when the various forms of life insurance (Supplemental Life, Employee Pay-All Optional Life, Spousal Supplemental, Dependent Life) are terminated due to age, the employee will have the conversion option, whereby the employee may elect to convert the coverage to an individual plan offered by Sun Life without proof of good health. This option is available for 31 days after the coverage ends.
Canada Pension Plan
At this time you will have to decide whether you will start receiving CPP. If you are in receipt of CPP please notify the college’s payroll department to ensure you no longer make CPP contributions on your bi-weekly pay.
To apply for Canada Pension Plan, visit Service Canada.
The Council has received a number of inquiries relating to WSIB coverage for individuals working beyond age 65. Workers aged 63 or older at the time of their injury are entitled to a two-year benefit payment, but some of the ancillary benefits such as retirement income are not provided.
CAAT Pension Options
CAAT Plan Members who reach age 65 have two choices regarding their pension.
- They can stop working which means retire, become a Pensioner, and collect pension payments.
- They can continue to work, remain a Plan Member, and continue to make contributions.
There is a maximum age limit to Plan participation: by November 30th of the year in which you turn 71, you will have to stop contributing to the Plan and you must start collecting a pension by December 1st of that year, even if you continue working.
You are not required to retire – but must start collecting your CAAT Pension.
Maximum age in Plan changes
The Sponsors’ Committee of the CAAT Plan has decided to amend the Plan text to change to age 71 the maximum age at which someone can be an active contributor to the Plan. This change was made so that the CAAT Plan’s rules will agree with the rules as laid out in the Income Tax Act, which was amended for the same reason.
The change means that once people have become Members of the Plan, they will remain Members, if they have not retired, up until the end of the year in which they reach age 71. During membership, contributions continue to be made from each pay, and Pensionable Service continues to accrue.
At the end of the year in which Members reach age 71, they must stop contributing to the Plan and begin receiving pension payments, even if they are still working. The CAAT Plan amendment also specifies that if the age is again changed in the Income Tax Act, the age in the Plan will also automatically change.