The Financial Services Commission of Ontario has given final approval for the merger between the Royal Ontario Museum pension plan and the Colleges of Applied Arts and Technology pension plan.
The merger, which began on Jan. 1, 2016, when employees of the ROM began contributing to the CAAT pension plan, is the first of its kind to use Ontario’s regulations permitting single-employer pension plans in the broader public sector to join an existing multi-employer pension plan.
Read: ROM pension members join CAAT Pension Plan
The transfer of more than $100 million in pension assets to the CAAT plan will fund the pension benefits accrued to Dec. 31, 2015 by the 640 active, retired and deferred pension members from the ROM plan. The merger also allows the ROM to exit the pension-management business.
According to the CAAT pension plan, it is in various stages of merger discussions with five more single-employer plans from the broader public sector.
Read: Sounding Board: ROM, CAAT pension merger lowers costs and risks