TORONTO--(BUSINESS WIRE)--Postmedia Network Canada Corp. today announced that its subsidiary, Postmedia Network Inc., (“Postmedia” or the “Company”) has received approval from 99% of the active members of its six defined benefit pension plans (the “Postmedia Plans”) to merge the Postmedia Plans with the Colleges of Applied Arts & Technology Pension Plan (the “CAAT Plan”) effective July 1, 2019 (the “Effective Date”). On the Effective Date, Postmedia became a participating employer under the CAAT Plan and all members of the Postmedia Plans, as well as members of Postmedia’s defined contribution pension plan, began accruing benefits under the DBplus provisions of the CAAT Plan. DBplus is a defined benefit pension plan with a fixed contribution rate for members, matched dollar for dollar by employers.
The merger remains subject to consent from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (“FSRA”) following the submission of a prescribed application requesting consent to the merger. Contingent on the consent of FSRA to the transfer of assets, the CAAT Plan will assume the defined benefit obligations of the Postmedia Plans accrued prior to the Effective Date. Once this transfer is completed, an additional cash funding obligation of $10.1 million will be payable to the CAAT Plan over a period of ten years beginning as early as April 1, 2020.
“We are pleased with the strong support from the Postmedia Plan members,” said Brian Bidulka, Executive Vice President and Chief Financial Officer. “Joining the CAAT Plan will provide Postmedia employees with sustainable defined benefit pensions while enabling the company to manage costs through fixed and predictable pension funding.”
About Postmedia Network Canada Corp.
Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns Postmedia Network Inc., a Canadian newsmedia company representing more than 140 brands across multiple print, online, and mobile platforms. Award-winning journalists and innovative product development teams bring engaging content to millions of people every week whenever and wherever they want it. This exceptional content, reach and scope offers advertisers and marketers compelling solutions to effectively reach target audiences. For more information, visit www.postmedia.com.
This news release may include information that is “forward-looking information” under applicable Canadian securities laws. The Company has tried, where possible, to identify such information and statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “may,” “will,” “could,” “would,” “should” and similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance. Forward-looking statements in this news release include, but are not limited to, statements with respect to with respect to the approval of the merger by FSRA, and future ability to provide sustainable defined benefit pensions and managing costs. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others: the risk that merger of the Postmedia Plans with the CAAT Plan may not obtain the required regulatory approvals, or be completed on the terms described in this press release or at all. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others: the risk that the merger of the Postmedia Plans with the CAAT Plan may not obtain the required regulatory consent or be completed on the terms described or at all and the anticipated benefits may not be achieved. For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in our annual management’s discussion and analysis for the years ended August 31, 2018 and 2017. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates, may differ materially from any such information and statements in this press release. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements.