your merged plan
March 1, 2024
The merger of The Retirement Plan for Employees of Jewish Vocational Service of Metropolitan Toronto (“JVS Toronto Pension Plan”) and the CAAT Pension Plan is a two-step process that is regulated by legislation.
As of February 28, 2024, the merger with the CAAT Pension Plan received 100% support from members with a defined benefit (“DB”) entitlement in the JVS Toronto Pension Plan (“JVS Toronto DB Pension Plan”).
All full-time employees in the JVS Toronto DB Plan and full-time employees in the defined contribution (“DC”) JVS Toronto Pension Plan (“JVS Toronto DC Pension Plan”) started contributing to and earning a pension under CAAT’s DBplus Plan design effective March 1, 2024 (“effective date”).
Full-time employees who were not participating in the JVS Toronto Pension Plan who began working prior to March 1, 2024 are required to join DBplus on the later of March 1, 2024 or first of the month following completion of 12 months of regular employment.
Part-time employees who were not participating in the JVS Toronto Pension Plan who began working prior to March 1, 2024 have the option to join DBplus on the later of March 1, 2024 or first of the month following completion of 24 months of service, provided they have earned at least 35% of the Year's Maximum Pensionable Earnings (as defined under the Canada Pension Plan) or worked a minimum of 700 hours in each of the two consecutive calendar years before joining DBplus.
All full-time employees hired on and after the effective date will be required to join DBplus on the first of the month following completion of 12 months of regular employment. Part-time employees hired on and after the effective date will have the option to join DBplus on the first of the month following the completion of the minimum service and/or earning requirements specified in the paragraph above.
Effective March 1, 2024, you and your employer will make contributions into DBplus based on a percentage of your Annual Earnings, meaning the basic compensation received by the member from the employer, excluding any payment for bonuses and gifts, but including the straight time component of hours worked on a holiday, holiday pay for the hours not worked, and vacation paid.
For active members with a previous DB entitlement from the JVS Toronto Pension Plan, there was a one-time opportunity to elect one of the options in the table below. JVS Toronto contributes at the corresponding Employer contribution rate based on your selected option. If you did not make an election within the specified timeline, the default rate was applied, based on whether you were making Member Optional Contributions immediately prior to the effective date:
All other JVS Toronto employees will have the option to select their contribution rate each year with changes effective the following January 1. If no contribution election is made, employees previously in the JVS Toronto DC Pension Plan will default to their previously elected contribution rate. Employees hired on or after March 1, 2024 will make an election at the time of hire; if no election is made, they will default to Option 1. The contribution rate options are outlined below. A minimum 1% contribution rate is required:
For the merger to proceed, the Financial Services Regulatory Authority of Ontario (“FSRA”) must approve the transfer of DB assets. An application will be filed with the regulator in the coming months. You will be notified once the asset transfer application has been submitted to FSRA, per regulatory guidelines. Once approved by FSRA, JVS Toronto Pension Plan members will be notified that their past pension benefits will be transferred to and replicated in the CAAT Pension Plan.
The JVS Toronto Pension Plan member services at the CAAT Pension Plan
Toll Free: 1-866-350-2228 Toronto area: 416.673.9000 Email: JVStoronto@caatpension.ca
If FSRA consents to the merger, the total combined retirement pension for members of the JVS Toronto DB Pension Plan will be made up of two parts:
JVS Toronto DB Pension Plan past pension + CAAT pension = Total annual pension payable from the CAAT Pension Plan
Any past account balances in respect to Member Optional Contributions or Member Additional Voluntary Contributions under the JVS Toronto DB Pension Plan are not part of the merger with the CAAT Pension Plan.
All other JVS Toronto employees will begin earning a pension under DBplus plan design on their date of eligibility.
Any pension earned under the JVS Toronto DB Pension Plan will continue to be eligible for post-retirement inflation protection in accordance with the JVS Toronto DB Pension Plan provisions.
While you work, your DBplus pension will receive conditional Average Industrial Wage (“AIW”) enhancements, subject to the provisions of the Income Tax Act (Canada). 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 completed, your earned DBplus pension, once in pay, will continue to grow with annual conditional inflation protection increases at a rate of 75% of the change in the Consumer Price Index (CPI), beginning January 1, 2025 (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.