your merged plan
September 7, 2022
The merger of the Pension Plan for Employees of The College of Family Physicians of Canada (“CFPC Pension Plan”) and the CAAT Pension Plan is a two-step process that is regulated by legislation.
The following section is applicable for all current employees of the employers listed below (“Employer”):
On July 31, 2022, 96% of members of the CFPC Pension Plan participating in the Defined Benefit (DB) provision voted in favor of the merger with the CAAT Pension Plan.
All employees who were participating in the CFPC Pension Plan started contributing to, and earning, a pension under CAAT’s DBplus Plan design effective August 1, 2022 (“effective date”).
All employees who work on an other-than-full-time basis (contract, relief, part-time) and were not participating in CFPC Pension Plan as of August 1, 2022, have the option to join starting on the effective date.
All full-time employees hired on and after the effective date will be 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 the Plan on and after their date of hire.
For the merger to proceed, the Financial Services Regulatory Authority of Ontario (FSRA) and other relevant regulators must approve the transfer of defined benefit assets. An application will be filed with the regulator in the coming months. Once approved, CFPC Pension Plan members will be notified that their past pension benefits will be transferred to and replicated in the CAAT Pension Plan.
Beginning on August 1, 2022, employees who were participating in the CFPC Pension Plan DB provision will make contributions to DBplus based on a percentage of eligible earnings indicated in the tables below. The Employer will match employee contributions.
For active members with a previous DB entitlement from the CFPC Pension Plan:
For active members of the CFPC Pension Plan with a previous Defined Contribution (DC) Plan entitlement and active employees who were not participating in any employer sponsored pension arrangement:
Your DBplus pension will be based on the total contributions, subject to the maximum limits set out in the Income Tax Act (Canada).
The DBplus definition of Annual Earnings includes base pay as well as bonuses, commissions, overtime and other special remunerations as applicable.
The College of Family Physicians member services at the CAAT Pension Plan
c/o Mercer | 120 Bremner Boulevard, Suite 800, Toronto, ON M5J 0A8
Toll-free: 1-833-625-7222
Email: caat.cfpc@mercer.com
If the FSRA and relevant regulators consent to the merger, active CFPC Pension Plan member’s total combined retirement pension will be made up of two parts, as indicated in the table below.
Total pension earned under the CFPC Pension Plan
Your total pension earned under the CFPC Pension Plan is the amount you have earned under the CFPC Pension Plan DB provision prior to August 1, 2022. It will be transferred and replicated under the CAAT Pension Plan once the assets are transferred following regulatory approval. This portion of your benefit will be payable to you based on the DB provisions of the CFPC Pension Plan. Please refer to your “Notice of Proposed Merger” Package for more details about your CFPC Pension Plan benefit and any applicable enhancements.
Total pension earned under DBplus
Your DBplus pension refers to the pension you are earning under the DBplus Plan design as of August 1, 2022.
DBplus enhancements while you're working
While you work, your DBplus pension will receive conditional Average Industrial Wage (AIW) enhancements, subject to the provisions of the Income Tax Act (Canada) (ITA). AIW enhancements are applied at the start of each year that you contribute. Enhancements are applied to the total DBplus pension you earned up until the end of the previous year and are subject to the CAAT Pension Plan Funding Policy.
AIW enhancements are based on the year-over-year percentage increase in Canada's AIW index, measured from July 1 to June 30. These enhancements are cumulative and are not applied in the year of retirement. See your Notice of Merger package for more information about the enhancements available to you.
If the merger is successful, once your pension commences, it will continue to grow with annual conditional inflation protection increases at a rate of 75% of the percent change in the Consumer Price Index (“CPI”) (up to a maximum increase of 8% with a carry forward provision for any amount above 8% in a given year), beginning January 1, 2024. These increases will allow your pension to continue growing with the economy, maintaining your spending power in retirement. Inflation protection increases are conditional on the CAAT Pension Plan Funding Policy. If the merger is successful: