your merged plan
November 30, 2020
The transfer of $38 million in pension assets to the CAAT Pension Plan from The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies (Registration Number: 0238279) was completed on November 10, 2020.
With the transfer of assets, the CAAT Pension Plan assumes responsibility for all defined benefit pension payments to members of The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies.
Following a thorough review, the Financial Services Regulatory Authority of Ontario (FSRA), provided consent to the transfer on October 8, 2020.
On December 29, 2019, an overwhelming 95% of members of The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies voted in favour of merging with the CAAT Pension Plan. Members of all areas of The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies – its defined benefit (DB), defined contribution (DC), and group retirement saving (GRSP) components – started contributing to, and earning, a pension under CAAT’s DBplus plan design effective January 1, 2020.
On September 18, 2020, FSRA advised that it would change how it would communicate its consent to the asset transfer (commonly referred to as “mergers”) with respect to The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies.
Given the extensive notice provided to date regarding the proposed asset transfers with respect to the pension plan listed above, and the delays related to the COVID pandemic, FSRA advised that it would not issue a NOID prior to issuing its consent regarding the merger of this plan.
Because this change was made while the applications were being considered for The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies, those affected by the proposed merger had 10 business days (or until October 1, 2020), to make written submissions with respect to FSRA’s proposed consent to the asset transfers.
Employees hired on or after January 1, 2020 will contribute to DBplus at the rate of contribution in effect at the time of hire.
Employees previously participating in the defined benefit (DB) plans will start contributing to DBplus at 5.0% with a 0.5% annual increase until January 1, 2024. Thereafter, contribution rates will be fixed at 7.0% of earnings. The employer contribution rate is 7.0% from the start and your pension benefit will be calculated (deemed) as if both employee and employer contributed 7.0% of earnings in each year as follows:
Employees previously participating in the defined contribution and Group RSP plans at a rate higher than indicated will start contributing to DBplus at their current rate until they meet the next threshold rate and ‘phase-in’ as follows (annually these pensions will be calculated based on the total contributions):
Agency: Catholic Crosscultural Services
Agency: Mary Centre
Agency: Rose of Durham
All other Agencies
Catholic Charities member services at the CAAT Pension Plan
Toll Free: 1.855.369.9479
If you have prior pension benefits from Catholic Charities your total annual pension will be the sum of two parts:
Catholic Charities pension + DBplus pension = Total annual pension payable from the CAAT Pension Plan
Restoration of benefits for periods of service between January 1, 2013 and December 31, 2019 will be provided after regulatory approval is received for the merger and the assets are transferred from Catholic Charities to the CAAT pension plan. If eligible, restored benefits would become payable to you in retirement as part of your total pension. Under the same terms as the CCAT Pension Plan.
Inflation protection increases are made when the CAAT Pension Plan is over 100% funded to pensions in pay. This is called conditional inflation protection. Such annual increases are 75% of the annual percentage increase in the Consumer Price Index (CPI) and capped at 8% with a carry forward provision (i.e., in years when inflation is high, any amount above 8% would be carried forward and applied to inflation protection in the following years). Increases are effective on January 1st of each year beginning in 2021, for the pension benefits you earn under DBplus, once you start your pension.
Your total pension, including the benefit you earned under the Catholic Charities defined benefit plan, will receive conditional inflation protection increases. These increases start the year after you start collecting your pension, but not before January 1, 2021.
Starting January 2021 your DBplus pension receives enhancements based on the Average Industrial Wage. These enhancements are applied at the start of each year you contribute to the Plan (subject to the CAAT Pension Plan Funding Policy). In addition, guaranteed enhancements of 2.25% will also be applied to the CCAT portion of your pension every year as long as you work, and subject to the provisions of the Income Tax Act (Canada).