Employees at Torstar Corp., Toronto, approved the merger of its C$900 million ($690 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 agreement, originally announced June 22, required approval from Torstar employees; 97% of Torstar workers voted in favor of the merger, CAAT and Torstar announced in separate news releases Friday.
The plan merger will be effective Oct. 1.
Active Torstar pension plan participants will be the first in CAAT's new DBplus plan design. Torstar plan participants will receive pension benefits based on the Torstar plan provisions for service accrued before the merger, after which pension benefits will be based on DBplus provisions, according to CAAT.
Torstar pension assets will be transferred to CAAT over the next several months once the transfer is approved by the Ontario Securities Commission.
Torstar publishes several Canadian newspapers, including the Toronto Star.
CAAT launched DBplus in June. It's open to private-sector companies across Canada that have no workplace DB plan. Derek Dobson, CEO and plan manager, said in an interview when the plan was launched that DBplus will use the governance structure, investment asset mix and administration of the CAAT plan.