Under the merger proposal, upon regulatory approval, the pension benefit you earned as a member of the SP Bargaining Pension Plan will be replicated and transferred to the CAAT Pension Plan. Starting on the effective date of April 1, 2021, you will contribute to the CAAT Pension Plan's DBplus design and any pension you earn after that date will be under the terms of the CAAT Pension Plan's DBplus design.
The merger requires active member approval via your union
The merger of the SP Bargaining Pension Plan and the CAAT Pension Plan is subject to the Pension Benefits Act (Ontario) and its regulations. This legislation allows any union representing SP Bargaining Plan members to consent on behalf of all its members who are members of the SP Bargaining Pension Plan. If consent is provided by at least two-thirds of the total active membership of the SP Bargaining Pension Plan via the unions representing you, and no more than one-third of any former members, retired members and any other persons entitled to benefits under the SP Bargaining Pension Plan object, then the merger may proceed.
To learn more about the merger, refer to your Notice of Proposed Merger package, prepared by Sanofi Pasteur Limited with the assistance of the CAAT Pension Plan. Your Notice of Proposed Merger or Information package includes information specific to you. Also be sure to attend an information session where representatives from the CAAT Pension Plan and the SP Bargaining Pension Plan will be available to answer your questions.
Below is a description of the merger and action steps.
For Active Members of the SP Bargaining Pension Plan
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.Your union must vote "yes" for the merger to proceed.
In order to consent to the merger, your union must submit a consent form on behalf of its membership by March 10, 2021. The notice we are sending you is for informational purposes only, and no action is required by you
Details about your pension under the merged plan
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.
Benefiting from a temporary reduction in contributions
- Once the merger receives approval and the DB assets are transferred from the SP Bargaining Pension Plan to the CAAT Pension Plan, a portion of the DB assets will be used to temporarily reduce your contributions by 3% of your earnings for 7 years, 2% of your earnings for 1 year, and 1% of your earnings for 3 months . It’s important to note that during this period, your pension benefit will still be calculated as if both you and Sanofi Pasteur Limited contributed a total of 18% of your earnings in each year.
Your employer contributes the balance of 18%. Member contributions are tax deductible, and all contributions are subject to maximum limits under the Income Tax Act (Canada).
Your total pension at retirement will be calculated in two parts:
- Following regulatory approval, the pension you have earned under the provisions of the SP Bargaining 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 by CAAT according to the provisions of the SP Bargaining 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 (or day prior if Statutory Holiday or weekend) 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.
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, 2023 (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 later of January 1, 2023 or the
January 1 of the year after you start your pension, your SP Bargaining Pension Plan DB benefit will annually receive conditional indexing adjustment under the CAAT Pension Plan subject to the CAAT Pension Plan Funding Policy and equal to 75% of CPI.
Once the merger is approved and the DB assets of the SP Bargaining Pension Plan are transferred to the CAAT Pension Plan, indexation based on CAAT’s indexation formula will be applied to your pension.
Need to speak with us?
If you have questions about retirement prior to the merger or
wish to change your personal or beneficiary information, please contact Sanofi Pension Plans Administration Services (Canada) at 1.866.616.8666
For any other inquiries, please contact CAAT Pension Plan at the below provided number or email.
SP Bargaining Pension Plan member services at the CAAT Pension Plan
Toll Free: 1.866.350.2228
Toronto area: 416.673.9000