Torstar Corp., Toronto, on Friday agreed to merge its C$900 million ($696 million) pension plan with a new defined benefit plan created by the C$10.8 billion Colleges of Applied Arts and Technology Pension Plan, Toronto.
The merger with CAAT's DBPlus plan will be effective Oct. 1, pending approval by Torstar plan participants and provincial regulators, Torstar said in a news release.
CAAT confirmed the merger agreement was reached, according to spokesman John Cappelletti.
Derek Dobson, CEO and plan manager of CAAT, said in an email the pension fund will focus on educating Torstar plan members before the participant vote on joining DBPlus.
Officials at Torstar could not be reached for information on when participants will vote on the merger. Torstar publishes several Canadian newspapers, including the Toronto Star.
Previously, CAAT has merged with the C$32 million Youth Services Bureau of Ottawa Pension Plan and the C$100 million Royal Ontario Museum Pension Plan, Toronto.
Ontario regulations allow single-employer pension funds of all kinds to be merged with a multiemployer plan like CAAT.