Torstar and the CAAT Plan enter next phase in merger process
From a press release issued by CAAT Pension Plan
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..
Copyright © 2018 CAAT Pension Plan, All rights reserved.