Making Headlines: Torstar Completes Pension Merger of Historic Proportions

Media company successfully merges its multiple retirement savings offerings with CAAT’s DBplus pension plan design, providing a flexible, cost-effective pension solution for its sizeable workforce

Industry: media
Employer size: Greater than 1000
Objective: DB plans ($900 million), DC plans, Group RRSPs

About Torstar Corp.

Torstar Corporation (Torstar) is a major player in the Canadian news and media business landscape, operating six daily newspapers and more than 60 community news outlets throughout Ontario. The company is best known for its flagship publication The Toronto Star, renowned for its groundbreaking investigative reporting, compelling opinion writing, and extensive news coverage. Torstar is listed on the Toronto Stock Exchange (TS.B).

The Challenge

Breaking News: Flexible Pension Solution Required

Torstar and its union partners were committed to providing its employees with a top-tier sustainable pension benefit. However, the organization faced significant challenges mired in a mix of defined benefit (DB), defined contribution (DC), and group RRSP plans covering approximately 5000 members, including deferred members and retirees.

As a publicly traded company, they were eager to find a cost-effective pension that could consolidate all plans under one roof, manage balance sheet liability, and maintain or enhance pension benefits for its workforce. A flexible pension solution would be required to not only meet the needs of a diverse group of employees but also align with the organization’s strategic objectives.

The Solution

DBplus is a Flexible Solution for Difficult Situations

Considering the variety of pension plans under its purview, Torstar required a dynamic solution to address its pension predicament. DBplus offered flexible contribution rates, fixed costs, and a straightforward onboarding process. For employees, DBplus also provided features that appealed to them, such as access to predictable lifetime retirement income, early retirement options, and survivor benefits were upheld.

Upon joining DBplus, an employer can mitigate balance sheet liabilities associated with administering a pension plan. The CAAT team assumes most plan management duties and takes over investment and fiduciary obligations. To welcome new members, CAAT offers extensive transition support, which includes member education sessions, retirement planning tools, and communication services. Merging with CAAT not only provides peace of mind for employers but also employees. 

The Results

Extra, Extra: Huge Triumph for CAAT and Torstar

In an overwhelming show of support, Torstar DB pension plan members voted 97% in favour of a merger with CAAT. Ultimately, Torstar streamlined its pension offerings under one pension plan ensuring pension equity and secure retirement income for life across its entire workforce.

Torstar’s merger with CAAT was more than just a big win for DB pension coverage in Canada, it also had historical significance. It was the first time a private sector single employer pension plan merged with a jointly sponsored pension plan (JSPP). The Financial Services Regulatory Authority (FSRA) granted consent for the asset transfer from Torstar’s eight DB plans to CAAT, totaling almost $900 million. This substantial sum was successfully transferred to CAAT on December 2, 2019.

Neil Oliver
“This was a historic merger and an important step forward for Torstar and for our registered defined benefit plan members. We are pleased that members continue to express strong support for CAAT’s pension plan.”
Neil Oliver
Chief Executive Officer,
Torstar Corporation

Simple, Efficient, and Valuable Pension Plan

When it comes to keeping costs low and simplifying complex pension structures, CAAT's DBplus pension plan design helps organizations:

  • Secure lifetime pensions for employees
  • Apply flexible contribution rates
  • Implement predictable and fixed costs
  • Employ streamlined onboarding
  • Reduce pension-related liabilities and enhance financial security for employees
  • Replicate previous DB plan benefits

DBplus enables organizations across Canada to offer a world-class pension, giving employees what they want and need - at affordable contribution levels.

Upgrade your retirement. Great companies deserve a great pension.

Our Pension Solutions team is ready to assist you in making the transition to DBplus as smooth as possible, ensuring your employees benefit from a secure pension plan.

Fill out the form below to:

  • Book a 30-minute consultation
  • Request additional information
  • Learn how to join DBplus

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