Plan Wind Up FAQs

Do I really have to read all of the information on this page?

No!  But you should.  Lakehead University is also planning on providing some information sessions on the wind up around the same time you'll be receiving your option packages.  These will be information sessions on the wind up only however, not information sessions on making a CAAT purchase.  Plan members can also view periodic updates on the wind up process here: Updates on Plan Changes.

What pension plan am I currently contributing to as an employee of Lakehead University?

Contributions to the Pension Plan for Professional Staff and the Lakehead University Employee Pension Plan have ceased for all eligible employees and are now being made to the CAAT DBPlus pension plan.

What’s happening with our old pension plans?

As a result of collective bargaining and employee group requests, the University is taking steps to grant employees and former employees the freedom to move their account balances to their own financial institutions or to another pension plan.  As the previous two pension plans can’t be wound up easily or quickly, the University is creating a third pension plan and moving all active and inactive members into it, then winding it up.  All pensioners will remain in their respective plans and continue receiving the same benefit they always have.

What is a pension plan wind up?

A pension plan wind up means that the pension plan is completely closed. Your defined contribution (“DC”) account balance will be paid out to you in full. You will have several options available to you for where you want your account balance to be transferred.

I am a retiree currently in receipt of a pension, do I have to change anything or be concerned about anything?

No.  Your pension benefits are protected by multiple layers of regulation, legislation and oversight from the University and from provincial and federal regulatory bodies.  Your benefit is not moving, ending, or otherwise changing in any way, and your pension is not part of the wind up process.  Only those members who are not currently drawing a pension will be affected.

Does a wind up mean I have to move my balance out?

Yes, if you're an active member or former employee with an account balance who has been moved from the Professional Plan and LUEPP to the new plan.  Deferring and leaving your account balance is no longer an option in the event of a plan wind up.

What communication has the Actuary sent regarding the wind up?

An Asset Transfer Notification and Wind Up Notification was sent to all affected members with a cover letter by Eckler Ltd. on November 22, 2024.  The postal strike may have caused delays in many people receiving them, however.  You can view a generic version of the entire package here (substitute Professional Plan for Employee Plan as applicable): Generic Notification Package

When is the wind up happening?

The steps required to wind up a pension are lengthy and involve many regulatory filings and approvals but have been ongoing and are expected to conclude in 2025. 

The effective date of the asset transfer is October 1, 2024. However, an Asset Transfer Application must be prepared and filed with the Ontario pension regulator (“FSRA”) to request approval to transfer the members’ account balances to the new plan. Once the Asset Transfer Application has been approved, the DC account balances will be transferred to the new Combined Plan.

The wind up effective date is November 30, 2024. We expect that the Wind Up Report will be filed with FSRA early in 2025. However, FSRA will not approve the wind up report until Lakehead University confirms that the asset transfers have been completed. Once that confirmation has been sent to FSRA, they will review and approve the Wind Up Report. The wind up report will detail the number of members, total account balances and confirm that the wind up will be carried out in accordance with Ontario pension legislation. FSRA’s priority is to ensure members are treated fairly and in accordance with pension legislation.

At some point after that in 2025 members will receive option packages allowing them to move their account balances.  It is recommended that all members start discussing their options with a qualified financial advisor as early as possible (bringing your annual member statement will help facilitate these conversations).

Where can I find my annual member statement?

You would have received your 2023 statement for our previous pension plans by regular mail sometime in June.  If you no longer have it, you can contact the Office of Payroll and Pension Services to have it reproduced. 

2024 statements would generally not be produced and mailed until June of 2025, but if you DO have your 2023 annual member statement, you can estimate your 2024 account balance by adding the 2024 rate of return for your plan to your 2023 final balance.  Rates of return are found on the Pension Services main page.

What are my options on plan wind up if I’m not retiring?

1. Transfer your account balance to a Locked-In Retirement Account (LIRA) at your financial institution.
2. Transfer your account balance to another pension plan, if that plan will accept the transfer in.

I have a LIRA from a previous pension plan, can I use that?

Yes, but only if it's an Ontario LIRA.  Federal locked-in RRSPs or other provincial LIRAs can't be used.

I'm thinking about retiring or planning to retire soon, what do I need to know?

If you're planning on retiring on or before April 30, 2025 you should notify the University and contact Pension Services as soon as possible, but by January 31, 2025 at the latest.  Any pension amounts transferred to retirement accounts prior to May 1 will be paid from the pension plan you are currently in, and will not become part of the asset transfer to the Combined Plan.  Any pension amounts transferred on or after May 1, 2025 will be paid from the Combined Plan.  Though it is expected that the Combined Plan filings and reports will be approved before May 1, 2025, it is possible that there could be regulatory delays that also delay account transfers.  The University and Eckler will still always do everything possible to action all pension transfers as quickly and smoothly as possible.  These same timeframes also apply to transfers related to resignations and other terminations.

What is expected of a plan member during this process?

Plan members do not need to take any steps regarding the asset transfer and wind up. That process will be handled by Lakehead University, with the assistance of Eckler.

It is important to ensure that you notify Lakehead University if you have an address change at any time during this process, so that we can ensure that we can keep you up to date on matters related to your pension benefit.

What will happen to my account balance during this process?

In order to wind up a pension plan, a formal wind up date must be set so that the legislated process can take place, but this does not mean that the pension monies are frozen at that date. In fact, the money will continue to be invested in the markets the same as it was before November 30, 2024 and plan members will get the full rate of return in the pension fund up to the date the money is actually paid out, which we expect will be sometime in 2025.

I’m still an employee of Lakehead University, can I transfer my balance into CAAT?

CAAT will accept transfers from our previous pension plan up to a specifically calculated maximum (18% of your earnings in each year of employment with the University while you were a contributing member of a pension plan).  This is called a purchase.  To request a purchase quote, you must log in to your CAAT member portal and navigate to the link “Purchase your leave”, then "Increasing your pension with a purchase".  Lakehead University only participates in the DBPlus Pension Plan, so the applicable information is found under DBPlus Purchases.  From there, follow CAAT's educational process titled "Learn, Return, Earn", to determine if a CAAT purchase is beneficial for you.  If you require assistance navigating CAAT's online tools please contact CAAT's dedicated member services team directly at 866-350-2228 or by email at member@caatpension.ca.  

*Lakehead University is currently working with Eckler to include a summary of past earnings in your option package that can be used to easily request past service buyback estimates from CAAT's online tools.  Once you receive your option package, this will make this process MUCH easier than looking up each of your T4s from all prior years of employment.

I’m no longer an employee of Lakehead University, can I transfer my balance to CAAT?

Only if you’re with a different employer who is also participating in the CAAT pension plan, otherwise it can only go to your current employer’s pension plan, or a LIRA.

If I transfer my balance to CAAT, what will I get for a pension?

The monthly pension resulting from a CAAT purchase varies by individual and is based on age and the amount of funds being used for the purchase.  To determine the monthly pension that a purchase will provide you, you must use CAAT’s online estimator in your own CAAT member portal by following the instructions after clicking the link “Purchase your leave”, then "Increasing your pension with a purchase".  Lakehead University only participates in the DBPlus Pension Plan, so the applicable information is found under DBPlus Purchases.  From there, follow CAAT's educational process titled "Learn, Return, Earn", to determine if a CAAT purchase is beneficial for you.

What happens if I don’t make an election and don’t return my pension option election form? 

We ask that you return your pension option election form within 30 days after receiving your option package, and we encourage you to do so. However, you legally have 90 days to make an election. If you do not make an election within 90 days (or such longer period if we allow it), pension legislation requires that we make an election on your behalf, called being “deemed” to have made a pension election. What this means is that we will purchase an annuity to pay you a pension for your lifetime at retirement.

What is an annuity? 

An annuity is a financial product that is purchased from a Canadian life insurance company to provide you with a regular monthly pension payment. The amount of monthly pension you will receive will be based on the amount that your DC account balance will buy in monthly pension from the insurance company. The insurance company will pay you a fixed amount of money typically on a monthly basis. Annuity payments would commence once you reach your eligible retirement date (age 65) or earlier on a reduced basis.

To protect and secure your annuity income, Canadian life insurance companies have to be members of a consumer protection agency called Assuris, which protects policyholders up to a certain amount if the insurance company is unable to pay.

I'm trying to transfer part of my account balance to CAAT and part to a LIRA, how do I complete my paperwork?

This could be by choice, or as a result of your account balance exceeding the maximum amount that CAAT will accept and will be a very common occurrence with our members.  On your Member's Election form, indicate this by filling in both sections 1 and 3 completely.  Then, complete 2 separate T2151s, one for each option.  CAAT's Registration Number is 0589895 when completing the T2151 for your transfer to CAAT, and you can verify further CAAT plan information here:

http://planinfoaccess.fsco.gov.on.ca/PlanDetails.aspx?PlanKey=0013021

This is the same process if you wanted to use 2 LIRAs at 2 separate financial institutions.  In the white space of the T2151 for the LIRA, feel free to add the notation "After transfer to CAAT" or similar wording to indicate to Eckler the order you need the transfers to happen in.  Please note, you must complete a full CAAT purchase application in it's entirety and receive correspondence from CAAT indicating they will accept the transfer and the exact maximum dollar amount.  Eckler cannot transfer based on an estimate from CAAT's online calculator.  The T2151 is a generic government form that can be downloaded here:

https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2151.html

Alternatively, if you're concerned about delays or simply need more time to make a decision, you can transfer the entire amount to a LIRA first and take time to complete the purchase request afterward.  CAAT will accept transfers from a LIRA directly, using similar paperwork.

My Financial Institution wants to fax my paperwork in, what's that number?

Eckler's Winnipeg office is supporting us with this, and that fax number is 204-988-1589.