For Active Members of the SJA Pension Plan with past Defined Benefit (DB) pension entitlement
Action steps
1. Learn about the merger
Review your personalized Notice of Proposed Merger package carefully. It includes key information about the CAAT Pension Plan, and the impact of the proposed merger on your pension. You can also review some information about the proposed merger on this website.
2. Estimate your pension
Refer to the page in your Notice of Proposed Merger package titled "Estimate your pension". Input the information marked "A" through "E"
into the DBplus Estimator
to project your total pension from DBplus if the merger is approved and
get an estimate of your pension at different retirement dates.
3. Attend an information session
The CAAT Pension Plan will be holding member information sessions where you can learn about the proposed merger and ask any questions.
4. Active members with a past DB entitlement must vote "yes" for this merger to be approved
To vote in favour of the merger, you must detach, complete, and
return the Consent form at the back of your Notice of Proposed Merger
package. Use the self-addressed, postage-paid envelope in your merger
package to return your consent form. Consent forms must be received by March 22, 2021 in order to count. A consent form that is not returned, or that is received after the deadline, counts as a "No" vote.
Details about your pension under the merged plan
Contribution rates
If the merger is approved by members, effective April 1, 2021 you will start contributing to the DBplus plan design under the CAAT Pension Plan.
Your employer contributes a matching amount. Member contributions are
tax deductible, and all contributions are subject to maximum limits
under the Income Tax Act (Canada).
Benefiting from a temporary reduction in contributions
- Once the merger receives approval and the DB assets are
transferred from the SJA Pension Plan to the CAAT Pension Plan, a
portion of the DB assets will be used to temporarily reduce your
contributions from 5% to 1% of your earnings for a minimum period of three years. It’s important to note that during this period, your
pension benefit will still be calculated as if both you and St. John
Ambulance contributed 5% of your earnings in each year.
Pension calculation
Your total pension at retirement will be calculated in two parts:
- Following regulatory consent, the pension you have earned under the DB provision of the SJA Pension Plan prior to April 1, 2021
will be transferred and replicated in the CAAT Pension Plan. This
portion of your pension benefit will be payable to you under the DB
provisions of the SJA Pension Plan.
- The pension you earn as of April 1, 2021 will be under the CAAT Pension Plan, using its DBplus formula.
The two pension amounts will be combined to make your total annual
lifetime pension. When you retire, your pension will be paid on the
first day of every month from the CAAT Pension Plan. Because your
pension will have been earned in two distinct plans, two different sets
of rules will apply to your total pension.
Inflation protection
Conditional inflation protection - enhancements after you retire
If the merger is completed, your DBplus pension, once in pay, 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), beginning January 1, 2022 (or from your pension
commencement date, if later). These increases will allow your pension to
continue to grow 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 completed:
- any benefit you earn under the DBplus plan design will have annual
conditional inflation protection increases applied at the beginning of
each year your pension is in pay; and,
- beginning at the earlier of January 1, 2022 or the
January 1 of the year after you start your pension, your SJA Pension
Plan DB benefit will annually receive the greater of (i) the conditional
indexing adjustment under the CAAT Pension Plan subject to the CAAT
Pension Plan Funding Policy and equal to 75% of the change in CPI or (ii) the
indexation provision under the SJA Pension Plan of 75% of the change in CPI minus 1%,
to a maximum indexation of 11%, taking into account the cumulative
indexing provided up to that date.
If you retire and start a pension before the Ontario pension
regulator consents to the merger, your pension will be indexed based on the
SJA formula. Once the merger is approved and the DB assets of the SJA
Pension Plan are transferred to the CAAT Pension Plan, any additional
indexation based on CAAT’s indexation formula will be applied to your
pension.
For Active Members of the SJA Pension Plan earning a Defined Contribution (DC) pension only
Action steps
1. Learn about the merger
Carefully review the personalized Information package that you received by mail. It includes key information about the CAAT Pension Plan, and the effect of the proposed merger on your pension. You can also review some information about the proposed merger on this website.
2. Estimate your pension
Input the information marked "A" through "C" into the DBplus Estimator to project your total pension from DBplus if the merger is approved and get an estimate of your pension at different retirement dates.
3. Attend an information session
The CAAT Pension Plan will be holding member information sessions where you can learn about the proposed merger and ask any questions.
Active members with a past Defined Benefit (DB) pension entitlement must vote "yes" for this merger to be approved.
You will begin earning a pension in DBplus if the members eligible to vote approve the merger.
Details about your pension under the merged plan
Contribution rates
If the merger is approved, effective April 1, 2021 employees
participating only in the Defined Contribution (DC) provision of the
SJA Pension Plan and employees who are hired on or after April 1, 2021 will contribute to DBplus at a rate of 5.0% of your earnings per year, matched dollar for dollar by St. John Ambulance.
Member contributions are tax deductible, and all contributions are subject to maximum limits under the Income Tax Act (Canada).
Pension calculation
The pension you earn as of April 1, 2021 would be under the CAAT Pension Plan, using its DBplus formula.
Inflation protection
Beginning at the earlier of January 1, 2022 or the January 1 of the year after you start your pension, your DBplus pension will continue to grow with annual conditional inflation protection increases at a rate of 75% of the change in the Consumer Price Index (CPI) subject to the CAAT Pension Plan’s Funding Policy.
These increases will allow your pension to continue to grow with the economy, maintaining your spending power in retirement. Inflation protection increases are conditional on the CAAT Pension Plan Funding Policy.