your merged plan
October 11, 2023
The assets have been transferred from the Pension Plan of Angus Consulting Management Limited (Registration Number 1217462) (the “ACML Pension Plan”) to the CAAT Pension Plan. The Financial Services Regulatory Authority (“FSRA”) consented to the transfer of assets from the ACML Pension Plan to the CAAT Pension Plan. The assets, totalling approximately $32.8M, were transferred to CAAT on October 10, 2023.
With the transfer of assets, the CAAT Pension Plan assumes responsibility for all defined benefit (“DB”) pensions accrued while in the ACML Pension Plan and all pension payments to current retired members of the ACML Pension Plan.
Former members of the DB component of the ACML Pension Plan should have received a communication with further details about their pension now that the assets have been transferred. Should you have any questions, please email info@dbplus.ca.
On August 27, 2022, an overwhelming 91% of members of the ACML Pension Plan voted in favour of the merger with the CAAT Pension Plan.
All full-time ACML employees or employees who were a part of the ACML pension plan started contributing to and earning a pension under CAAT’s DBplus Plan design effective September 1, 2022 (“effective date”). Part-time employees who were not a part of the ACML Pension Plan as of the effective date were given the option to join DBplus on the effective date. Employees hired on a temporary or contract basis who were not a part of the ACML Pension Plan will be eligible to enroll upon completing two years of continuous employment.
All full-time employees hired on and after the effective date are required to join DBplus on their date of hire. Other than regular full-time employees hired on and after the effective date will have the option to join DBplus on and after their date of hire.
CAAT filed applications with FSRA for its consent to transfer DB assets from the ACML Pension Plan to the CAAT Pension Plan.
On July 6, 2023, FSRA provided consent to transfer the DB assets from the ACML Pension Plan to the CAAT Pension Plan and DB members of the ACML Pension Plan were notified that their past pension benefits will be transferred to and replicated in the CAAT Pension Plan.
For active members with a DB entitlement in the ACML pension plan, beginning on September 1, 2022, you will make contributions at a rate of 6% of pensionable earnings, with your employer matching those contributions. For the period starting September 1, 2022 and ending on August 31, 2023, ACML will be contributing an additional 2% on your behalf, for a total contribution rate (i.e., by you and your employer) of 14%. Your contribution rate will remain at 6%. After this period ends, ACML’s contribution rate will return to 6%. For more clarity, see the schedule below.
If you are a non-member of the ACML Pension Plan hired prior to February 24, 2022 and did not elect to immediately contribute 6% of your pensionable earnings as of September 1, 2022 you will make contributions to DBplus based on the following schedule.
If you are a non-member of the ACML Pension Plan hired on or after February 24, 2022, your DBplus contributions will be 6.0% of your pensionable earnings. Your contributions will be 100% matched by ACML beginning on September 1, 2022.
For all the above scenarios, the pension you earn in DBplus will be based on a combined total contribution rate, and all contributions are subject to maximum limits under the Income Tax Act (Canada).
Angus Consulting Management member services at the CAAT Pension Plan
c/o Mercer | 120 Bremner Boulevard, Suite 800, Toronto, ON M5J 3A9
Toll Free: 1.855.872.0286
If FSRA consents to the merger, the total combined retirement pension for active members with a DB entitlement in the ACML Pension Plan will be made up of two parts:
ACML plan DB pension + DBplus pension = Total annual pension payable from the CAAT Pension Plan
If you are a full time, non-member of the ACML Pension Plan, you have been enrolled in DBplus as of September 1, 2022.
Those who are part-time, non-members of the ACML Pension Plan, you have the option to join DBplus as of September 1, 2022.
Conditional inflation protection in retirement
Your ACML pension benefit will be eligible to receive annual inflation protection of 50% of the annual change in the Consumer Price Index (“CPI”). Conditional inflation increases are made each year when the CAAT Pension Plan’s funded status permits, in accordance with the CAAT Pension Plan Funding Policy. If you begin receiving your pension between January 1, 2025 and January 1, 2040, the inflation protection increases will not be conditional on the CAAT Pension Plan’s funded position and will be automatically granted. After this period expires, inflation protection increases will become conditional on the funded status of the CAAT Pension Plan and are prescribed in the CAAT Pension Plan Funding Policy.
Any benefit you earn under DBplus will have annual conditional inflation protection increases applied at the beginning of each year that your pension is being paid to you. Increases will be at a rate of 75% of CPI, subject to the CAAT Pension Plan Funding Policy.