As a Modern DB (Defined Benefit) pension plan, the CAAT Pension Plan is open to discussions with interested organizations (including those outside of Ontario's post-secondary education sector) about the possibility of joining the Plan. The CAAT Plan provides a proven solution for organizations that want to offer a cost-effective and sustainable pension to their employees.
Various organizations both in and outside the public sector have already joined the CAAT Plan, and now offer secure lifetime pensions to their employees. Even organizations that do not currently offer a pension plan, or that offer DC or RRSP arrangements, can take advantage of the opportunity to offer a cost-effective, sustainable pension solution to employees through the CAAT Pension Plan.
If you're an existing member of the CAAT Plan, read why growing the CAAT Plan benefits all.
DBplus is a second pension plan design offered by the CAAT Pension Plan.
DBplus provides flexibility to accommodate the needs of employers and employees from various sectors; offering a valuable Defined Benefit (DB) design that’s simple, secure, stable and sustainable.
If you're a member of an employer or member group interested in a valuable DB pension, visit www.dbplus.ca to learn more.
Torstar pension plans join CAAT Pension Plan - making us stronger
(October 1, 2018) Torstar Corporation and its applicable subsidiaries become the first new employers to join CAAT using the DBplus plan design.
Torstar defined benefit (DB) pension plan members voted 97% in favour to merge with the CAAT Plan, and the merger is effective October 1, 2018.
All members and employers benefit from growing plan membership
Growth in membership helps improve benefit security for all members and accelerates the building of reserves under the Plan’s Funding Policy.
The merger comes after thorough and lengthy due diligence by the CAAT Plan and secures sufficient assets from the Torstar plans to cover all their pension obligations. In the coming months, an application will be made to the Financial Services Commission of Ontario for its consent to transfer the DB pension assets from the Torstar pension plans to the CAAT Plan.
Under the terms of the merger, active and retired members of Torstar’s eight DB pension plans will receive pensions based on the Torstar plan provisions for their service accrued before the effective date of the merger, and pensions based on DBplus provisions on contributions made after that date.
Providing excellent services to current members remains a fundamental part of the CAAT Plan’s commitment to members, who can expect the same level of excellent service standards that employers and members have come to expect from the CAAT Pension Plan. The addition of Torstar brings membership close to 50,000 members.
“The overwhelming support from Torstar and its pension plan members for this merger shows that the DBplus plan design is a viable solution for employers and employees looking for secure and sustainable lifetime pensions at a fixed contribution rate – regardless of whether the organization is public, private, or not-for-profit.”
Derek Dobson, CEO of the CAAT Pension Plan
Torstar and the CAAT Plan enter next phase in merger process
(June 22, 2018) Growing membership in the CAAT Plan benefits all stakeholders: the employer gets the valuable attraction and retention benefits of offering a DB pension plan and is no longer required to manage the risks of their current pension plan; members get access to a valuable, sustainable, and secure DB pension; and, the CAAT Plan further improves in strength for existing members and employers.
As such, the CAAT Plan is open to beneficial mergers that improve the long-term sustainability of the Plan, including employers and members from the nonprofit, private, and broader public sectors. Our key principle for mergers requires that any past liabilities come with the appropriate assets to maintain or improve our strong funded status.
The CAAT Plan is pleased to share an update on the merger process with Torstar Corporation. On June 21, the CAAT Plan entered into an agreement to merge Torstar’s eight registered defined benefit pension plans, effective October 1, 2018.
Members of the Torstar pension plans will have 90 days to vote on the merger. Ontario pension regulations require that at least two-thirds of active members consent to the merger, while no more than one-third of retired members vote against it. Final consent of the transfer of assets for past benefits rests with Ontario’s pension regulator.
There are about 3,000 members of the Torstar defined benefit pension plans. If approved, this will be the third merger of a single-employer, defined benefit pension plan with the CAAT Plan. The Youth Services Bureau of Ottawa joined at the beginning of 2018, while the Royal Ontario Museum pension plan merged with the CAAT Plan in 2016.
“We’re excited about the possibility of the merger with the Torstar pension plans,” says Derek W. Dobson, CEO of the CAAT Plan. “With the signing of the agreement, the approval process is now in the hands of about 3,000 Torstar plan members. Our focus will remain on educating members to ensure they are informed before voting on joining DBplus.”
Torstar businesses include the Toronto Star, Canada’s largest daily newspaper, six regional daily newspapers in Ontario including The Hamilton Spectator; English-language Metro newspapers in several Canadian cities; more than 80 weekly community newspapers in Ontario; flyer distribution services; and digital properties including thestar.com, wheels.ca, save.ca, toronto.com, a number of regional online sites and eyeReturn Marketing.
CAAT Pension Plan in exploratory discussions with Torstar on merging its pension plans
Any pension merger must be mutually beneficial
(February 28, 2018) The CAAT Plan is in exploratory discussions with Torstar and its union representatives regarding a possible merger with the Torstar DB pension plans.
The CAAT Plan was contacted by representatives of Torstar following its successful merger with the Royal Ontario Museum pension plan and its openness to permitting private sector plans to join.
The CAAT Plan, Torstar, and union representatives are working through the details, including regulatory requirements that would be needed to move forward with the potential merger.
Preliminary analysis shows that a merger with the Torstar pension plans has the potential to align with the Plan’s strategic objectives of ensuring benefit security, contribution rate stability and intergenerational equity for current and future members. Any merger must meet the CAAT Plan’s guiding principles that it be in the best interest of the Plan, and the Plan would not assume any unfunded liabilities of the merging plan.