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.
Derek Dobson CEO of the CAAT Pension Plan
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.