Postmedia signs agreement with CAAT Pension Plan
(January 30, 2019) The CAAT Pension Plan is pleased to share an update on a prospective merger with Postmedia Network Inc (Postmedia). Over the past number of months, the CAAT Pension Plan has been in exploratory discussions with Postmedia regarding a possible merger with the Postmedia defined benefit pension plans. Recently, Postmedia signed a Memorandum of Agreement with the CAAT Pension Plan to merge its six defined benefit pension plans with assets of approximately $500 million. The agreement is subject to certain conditions including approval from the CAAT Pension Plan’s Board of Trustees and Sponsors’ Committee and consent of Postmedia pension plan members and the Financial Services Commission of Ontario (FSCO) or its successor the Financial Services Regulatory Authority (FSRA).
Due diligence of the merger shows that a merger with the Postmedia pension plans will align with the CAAT Pension Plan’s strategic objectives of ensuring benefit security, contribution rate stability and intergenerational equity for current and future members. Any merger must meet the CAAT Pension Plan’s guiding principles that it is in the best interest of the Plan, and the Plan would not assume any unfunded liabilities of the merging plan.
Over the next number of months the CAAT Pension Plan will participate in information sessions with Postmedia pension plan members. Following these sessions, the regulatory required 90-day consent period will begin.