WINNIPEG, MB / ACCESSWIRE / January 9, 2020 / FP Newspapers Inc. (TSXV:FP)(OTC PINK:FPNUF) ("FPI") today announced that FP Canadian Newspapers Limited Partnership ("FPLP") has received approval from the members of its registered defined benefit pension plan (the "FPLP Plan") to proceed with the merger of the FPLP Plan with the Colleges of Applied Arts & Technology Pension Plan (the "CAAT Plan") effective January 1, 2020 (the "Effective Date"). On the Effective Date, FPLP will become a participating employer under the CAAT Plan and all members of the FPLP Plan, as well as members of FPLP's defined contribution pension plan, will begin 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") and the Manitoba Office of the Superintendent - Pension Commission. Following the consent of the regulatory bodies to the transfer of assets, the CAAT Plan will assume the defined benefit obligations of the FPLP Plan accrued prior to the Effective Date. The CAAT Plan has determined the assets of the FPLP Plan will exceed the obligations being assumed by approximately $1.1 million and this excess will be used to subsidize future contributions for both the employees and employer.
"We are very pleased that the plan members have virtually unanimously endorsed the merger," said Robert Silver Chairman and President of FPI. "We believe merging with the CAAT Plan is a significant positive development for both FPLP Plan members and the business."
About FPI
FPI owns securities entitling it to 49% of the distributable cash of FP Canadian Newspapers Limited Partnership ("FPLP"). FPLP owns the Winnipeg Free Press, the Brandon Sun, and their related businesses, as well as the Canstar Community News division, the publisher of six community newspapers in the Winnipeg region, and The Carillon in Steinbach with its related commercial printing operations. The businesses employ 364 full-time equivalent people in Winnipeg, Brandon, and Steinbach Manitoba. Further information can be found at www.fpnewspapers.com and in disclosure documents filed by FP Newspapers Inc. with the securities regulatory authorities, available at www.sedar.com.
For further information please contact:
Daniel Koshowski, CFO
FP Newspapers Inc.
Phone (204) 771-1897
SOURCE: FP Newspapers Inc.