Members of Torstar Corp.’s eight defined benefit pension plans have agreed to merge with the Colleges of Applied Arts and Technology pension plan.
Starting Oct. 1, 2018, the plans will be part of CAAT, pending the consent of the superintendent of the Financial Services Commission of Ontario. Once approved, the Torstar plan members will start accruing benefits under the DBplus provisions of the CAAT plan.
“We believe this merger represents an important step forward for Torstar and for our registered defined benefit pension plan members,”said Lorenzo DeMarchi, executive vice-president and chief financial officer of Torstar, in a press release. “We are pleased that members have provided a strong endorsement of the merger.”
Liabilities for all past benefits, as well as all assets of the Torstar plans, will be transferred to CAAT, which will take on the responsibility of making payments to members. The transfer shouldn’t require any additional cash funding, according to a press release.
“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,” said Derek Dobson, chief executive officer of the CAAT pension plan, in a press release.