your merged plan
April 1, 2021
The merger of the defined benefit (DB) component of the Pension Plan for Employees of The Priory of Canada of the Most Venerable Order of the Hospital of St. John of Jerusalem (the “SJA Pension Plan”) is regulated by legislation and is a two-step process.
On March 22, 2021, 92% of St. John Ambulance DB plan members voted in favor of merging the DB component of the SJA Pension Plan with the CAAT Pension Plan. All members of the SJA Pension Plan’s defined contribution (DC) component, including those who previously participated in the SJA Pension Plan’s DB component, started contributing to and earning a pension under The CAAT Pension Plan’s DBplus plan design effective April 1, 2021.
The Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “CEO of FSRA”) must approve the transfer of defined benefit assets and liabilities from the SJA Pension Plan to the CAAT Pension Plan. An application will be filed with FSRA in the coming months. Once FSRA provides consent to the transfer, St. John Ambulance members with a DB entitlement under the SJA Pension Plan will be notified that their past pension benefits will be transferred to and replicated under the CAAT Pension Plan.
St. John Ambulance members will make contributions to DBplus beginning on April 1, 2021 based on a percentage of eligible earnings indicated in the table below under ‘Employee Contributions’.
Your DBplus pension will be based on the contributions you and St. John Ambulance make to DBplus, subject to the maximum limits set out in the Income Tax Act (Canada) (ITA).
If FSRA consents to the merger, active St. John Ambulance members’ total combined retirement pension will be made up of two parts:
The St. John Ambulance DB pension + DBplus pension = Total annual pension payable from the CAAT Pension Plan
Your total defined benefit (DB) pension earned under the SJA Pension Plan is the amount you have earned under the SJA Pension Plan* prior to December 31, 2014 (when the DB component of the SJA Pension Plan was frozen), that will be transferred and replicated under the CAAT Pension Plan if the merger is completed. This portion of your benefit will be payable to you according to the provisions of the SJA Pension Plan.
The total pension earned under DBplus is the benefit you will earn after the effective date (April 1, 2021)
under the CAAT Pension Plan if the merger is approved by members.
*For members with a province of employment in Alberta and Manitoba who have not terminated employment, this amount will continue to grow with your earnings, as required by applicable legislation.
Inflation protection in retirement
After FSRA consents to the merger, beginning the later of January 1, 2022, or the January 1 after you commence your pension, your SJA Pension Plan DB pension will receive the greater of the conditional indexing adjustment under the CAAT Pension Plan subject to the CAAT Pension Plan Funding Policy (75% of the change in the Consumer Price Index (CPI)), and the indexation formula under the SJA Pension Plan (75% of change in CPI minus 1%, to a maximum of 11%), compared on a cumulative basis.
Any benefit you earn under DBplus will also have annual conditional inflation protection increases applied at the beginning of each year your pension is in pay at a rate of 75% of the change in CPI, subject to the CAAT Pension Plan Funding Policy.
Other enhancements while you're working
While you work, you will receive conditional Average Industrial Wage (AIW) enhancements on your DBplus pension, subject to the provisions of the Income Tax Act (Canada) (ITA). AIW enhancements are applied at the start of each year you contribute to the CAAT Pension Plan to the total DBplus pension you earned up until the end of the previous year and is 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.
St. John Ambulance Member Services at the CAAT Pension Plan
Toll Free: 1.855.369.9479