CPE Media News – pcJournal (6/22/2018) – Torstar Corporation (TSX: TS.B) has entered into an agreement with the Sponsors Committee and Board of Trustees of the Colleges of Applied Arts & Technology Pension Plan (CAAT Pension Plan) to merge Torstar’s eight registered defined benefit pension plans with CAAT Pension Plan effective October 1st, 2018, with Torstar and certain of its subsidiaries becoming participating employers under CAAT Pension Plan.
If approved by members, Torstar’s registered defined benefit pension plan members will begin accruing benefits under the new DBplus provisions of CAAT Pension Plan beginning October 1st, 2018.
Following approval by the Superintendent of Financial Services (Ontario), the liabilities for all past benefits under the Torstar Plans will be transferred to CAAT Pension Plan together with the assets of the Torstar Plans, and CAAT Pension Plan will assume responsibility for all pension benefit payments to members of the Torstar Plans going forward.
CAAT Pension Plan is sponsored by the College Employer Council, on behalf of the college boards of governors, OCASA (Ontario College Administrative Staff Association), and by OPSEU (Ontario Public Service Employees Union).
photo credit: Colleges of Applied Arts & Technology Pension Plan
News Releases
Torstar Corporation Enters into Agreement with CAAT
TORONTO, ONTARIO – June 22, 2018 – Torstar Corporation announced today it has entered into an agreement with the Sponsors Committee and Board of Trustees of the Colleges of Applied Arts & Technology Pension Plan (the “CAAT Plan”) to merge Torstar’s eight registered defined benefit pension plans (the “Torstar Plans”) with the CAAT Plan effective October 1st, 2018, with Torstar and certain of its subsidiaries becoming participating employers under the CAAT Plan. The agreement contains customary representations and warranties and is subject to customary closing conditions and approvals, including consent by the Torstar Plan members and approval of the Superintendent of Financial Services (Ontario).
The CAAT Plan is a jointly sponsored defined benefit pension plan, with 42 participating employers, more than 46,000 members, and assets valued at approximately $11 billion as at January 1, 2018.
If approved by members, Torstar’s registered defined benefit pension plan members will begin accruing benefits under the new DBplus provisions of the CAAT Plan beginning October 1st, 2018. Following approval by the Superintendent of Financial Services (Ontario), the liabilities for all past benefits under the Torstar Plans will be transferred to the CAAT Plan together with the assets of the Torstar Plans, and the CAAT Plan will assume responsibility for all pension benefit payments to members of the Torstar Plans going forward. No additional cash funding related to the transferred liabilities is expected to be required from Torstar in connection with the merger. Regulatory approval is not expected to occur prior to the second half of 2019.
Lorenzo DeMarchi, Executive Vice President & Chief Financial Officer of Torstar, said: “We look forward to working with the various constituents to obtain approval for this proposed merger. We believe this will be a positive development for our registered defined benefit pension plan members and for Torstar overall.”
ABOUT TORSTAR CORPORATION
Torstar Corporation is a broadly based media company listed on the Toronto Stock Exchange (TS.B). Its businesses include the Toronto Star, Canada’s largest daily newspaper, six regional daily newspapers in Ontario including The Hamilton Spectator; English-language Metro newspapers in several Canadian cities; more than 80 weekly community newspapers in Ontario; flyer distribution services; and digital properties including thestar.com, wheels.ca, save.ca, toronto.com, a number of regional online sites and eyeReturn Marketing. Torstar also holds a majority interest in VerticalScope, a North American vertically-focused digital media company.
Torstar’s news releases are available on the Internet at www.torstar.com
For more information please contact Lorenzo DeMarchi, Executive Vice President & Chief Financial Officer, Torstar Corporation at (416) 869-4776.