your merged plan
July 1, 2021
The merger of the Pension Plan for Employees of The George Hull Centre for Children and Families (the GHC DB Pension Plan) and the CAAT Pension Plan is a two-step process that is regulated by legislation.
On June 14, 2021, an overwhelming 100% of unionized and non-unionized members of the GHC DB Pension Plan voted in favour of the merger with the CAAT Pension Plan. Eligible employees started contributing to, and earning, a pension under CAAT’s DBplus Plan design effective July 1, 2021. This includes full-time and part-time employees of The George Hull Centre for Children and Families (The George Hull Centre) who previously participated in:
Those who are not regular full-time employees (part-time, contract, or relief staff) and who are not members of the GHC DB Pension Plan or the Group RRSP now have the option to join DBplus.
The Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (FSRA) must approve the transfer of pension plan assets and liabilities. An application will be filed with FSRA in the coming months. Once approved by FSRA, GHC DB Pension Plan members will be notified that their past pension benefits will be transferred to and replicated in the CAAT Pension Plan.
Beginning on July 1, 2021, employees of The George Hull Centre will make contributions to DBplus based on a percentage of eligible earnings indicated in the table below. The George Hull Centre will match employee contributions.
Your DBplus pension will be based on the contributions you and The George Hull Centre make to DBplus, subject to the maximum limits set out in the Income Tax Act (Canada) (ITA).
George Hull Centre member services at the CAAT Pension Plan c/o Mercer | 120 Bremner Boulevard, Suite 800, Toronto, ON M5J 0A8 Toll Free: 1.855.678.3143 Email: caat.ghc@mercer.com
If FSRA consents to the merger, active GHC DB Pension Plan members’ total combined retirement pension will be made up of two parts:
The GHC DB Pension Plan pension + DBplus pension = Total annual pension payable from the CAAT Pension Plan
If you are a non-DB member who was participating in the Group RRSP, or a regular full-time staff member at The George Hull Centre, you will automatically be enrolled in DBplus as of July 1, 2021.
Those who are not regular full-time employees (part-time, contract, or relief staff) and who are not members of the GHC DB Pension Plan or the Group RRSP will have the option to join DBplus as of July 1, 2021.
Inflation protection refers to increases made to pensions paid to retired members when the CAAT Pension Plan is over 100% funded. Such annual increases are 75% of the change in the annual percentage increase in the Consumer Price Index (CPI). They are capped at 8% with a carry forward provision (i.e., in years when inflation is high, any amount above 8% would be carried forward and applied to inflation protection in the following years). Conditional increases are effective each January 1, based on the CAAT Pension Plan’s funded status.
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.
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.