your merged plan
April 1, 2023
The defined benefit (“DB”) assets have been transferred from the Lutheran Church – Canada Pension Plan (Registration Number 00355610) (the “LCC Pension Plan”) to the CAAT Pension Plan. The Alberta Superintendent of Pensions (“Alberta Superintendent”) consented to the transfer of DB assets from the LCC Pension Plan to the CAAT Pension Plan. The assets, totalling approximately $39.6M, were transferred to CAAT on November 8, 2023.
With the transfer of assets, the CAAT Pension Plan assumes responsibility for all defined benefit pensions accrued while in the LCC Pension Plan and all pension payments to current retired members of the LCC Pension Plan.
Former members of the DB component of the LCC Pension Plan should have received a communication with further details about their pension now that the assets have been transferred. Should you have any questions, please email info@dbplus.ca.
On March 19, 2023, 96% of members of the LCC Pension Plan with DB entitlements voted in favour of the merger with the CAAT Pension Plan.
Members of the LCC Pension Plan started contributing to and earning a pension under CAAT’s DBplus Plan design effective April 1, 2023 (“effective date”). Employees of participating employers who are not currently members of the LCC Pension Plan (i.e. part-time and temporary) must be enrolled upon completion of the minimum service and/or earning requirements.
Full-time employees hired on and after April 1, 2023 join DBplus on their date of hire. Part-time and temporary employees hired after the effective date join DBplus upon completion of minimum service and/or earning requirements.
CAAT filed applications with the Alberta Superintendent for its consent to transfer DB assets from the LCC Pension Plan to the CAAT Pension Plan.
On September 21, 2023, the Alberta Superintendent provided consent to transfer the DB assets from the LCC Pension Plan to the CAAT Pension Plan.
Effective April 1, 2023, you and LCC using pooled contributions charged to all participating employers will make contributions into DBplus based on a percentage of your eligible earnings indicated in the table below:
Active members who commence long-term disability benefits after April 1, 2023 are not required to contribute to the plan, but LCC using pooled contributions charged to all participating employers contributes both the employer contributions and the member contributions based on long-term disability earnings for as long as the active member continues to qualify for long-term disability benefits.
Lutheran Church member services at the CAAT Pension Plan c/o Buck 201 City Centre Drive, Suite 1000, Mississauga, ON L5B 4E4
Toll Free: 1-888-870-3080 Fax: 1-905-272-6300 Email: lutheranchurchemailbox@buck.com
If the regulators consent to the merger, the total combined retirement pension for active members with a DB entitlement in the LCC DB Pension Plan will be made up of two parts:
LCC DB past pension + CAAT pension = Total annual pension payable from the CAAT Pension Plan
If you are a Defined Contribution (DC) member without an entitlement in the LCC DB Pension Plan, you have been enrolled in DBplus as of April 1, 2023.
Members with a defined contribution (“DC”) account under the LCC Pension Plan:
Subject to regulatory approval of the merger, the LCC Pension Plan will then be wound-up and all remaining assets, including any DC account balances, will be transferred out of the plan. Members will have several options to select from in terms of the treatment of their DC account balance.
More information about members’ transfer options will be provided at a later date. No action is needed from members at this time in respect of their DC account balance. The money that members already have in their DC account will continue to be invested until we finalize the DB fund asset transfer and wind-up. Members can continue to make investment changes to their DC investments, and they will receive information from Sun Life on their account, including statements, and by accessing the Sun Life website.
Your earned DBplus pension, once your retire and start collecting your 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), beginning January 1, 2024 (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.
LCC DB Pension Plan benefits earned prior to the merger are not subject to inflation protection.