Corporate mergers

Impact on your defined benefit pension plan

A corporate merger may result in changes to a pension plan. If that happens, you will be informed, no matter how small the change. However, if you do not receive any information about the effect of such a business change on your pension plan and you are concerned, you can contact your plan administrator.

The most common changes

When there is a corporate merger, the most frequently occurring changes are as follows:

• 2 or more plans are merged into a single plan
• your plan is divided into 2 or more plans
  (for example, one for union members and one for non-unionized employees)
• replacement of an employer who is party to the plan

Impact on your benefits

Generally, a merger will not have any effect on the benefits that you have accumulated  in the pension plan as a member. If this is not the case, you will be informed. However, your benefits and those of the other members can never be reduced without your consent.

The plan is terminated

A corporate merger may also result to the termination of the plan.