WHAT S NEW IN PENSIONS AND BENEFITS AT FSCO. PENSION e-bulletin

Size: px

Start display at page:

Download "WHAT S NEW IN PENSIONS AND BENEFITS AT FSCO. PENSION e-bulletin"

Shavonne Rose
6 years ago
Views:

1 Volume 19, No. 2 April 2011 Pensions and Benefits Law Section WHAT S NEW IN PENSIONS AND BENEFITS AT FSCO PENSION e-bulletin Don t forget to subscribe to the Pension e-bulletin by clicking on the Subscribe to Pension e- Bulletin icon in the Pension section of the FSCO website ( FSCO WEB SITE POSTINGS Since the last report in November, 2010, the following items have been posted to the Pensions section of the FSCO website. You can easily access any item posted since January directly from the WHAT S NEW? column on the right hand side of any FSCO Pensions page. Any bill, policy or other document or information that is referred to is available by clicking on the link in the description of the item on the relevant FSCO web page. March 2011 Postings Submissions Consultation on Administrator s Management of Inquiries and Complaints from Beneficiaries (OBA, OMERS); Spring 2011 Budget (proposed changes to the PBA); O. Reg. 86/11 filed (relating to Abitibi pension plans); O. Reg. 85/11 filed (amends the PBA to provide for Ontario to adopt the federal investment rules (for investment of pension fund assets) as they are amended from time to time); O. Reg. 84/11 filed (relating to broader public sector pension plans); A Change of Custodian Filing and Amendment Requirements (replaces pension policy A Notification of Change of Carrier); A Types of Asset Transfers (replaces pension policy A Types of Asset Transfers and A Asset Transfers Between Insurance Contracts or Policies); Pension Policy Review (link to recently revised and archived pension policies); Update Improving Pension Regulatory Services Project (link to project update); Refiling of AIR and PBGF forms (new Q&A on revisions to filings); FAQs for Nortel Pensioners (link to Ministry of Finance posting); Consultation on Risk-based Regulation (consultation paper posted); DB Funding Report ( ); Bill 133 Family Statute Law Amendment Act, 2009 (draft regulations and consultation paper released); CAPSA Guideline on Fund Holder Arrangements (released); CAPSA Consultation - Pension Plan Prudent Investment Practices and Funding Policy (released); Coming Soon - More Electronic Filing Options for Pension Plans;

2 FAQ CICA Handbook Changes and Application of s. 76 of Regulation; February 2011 Postings A Electronic Communications Between Plan Administrators and Plan Beneficiaries (replaces pension policy A Electronic Communications Between Plan Administrators and Plan Beneficiaries); R Retirement Dates (replaces pension policy R Normal Retirement Date); T Commuted Value Transfer Where Plan Underfunded and Member within 10 Years of Normal Retirement Date (replaces pension policy T Commuted Value Transfer Where Plan Underfunded); Pension Policy Review (link to recently revised and archived pension policies); Webinar coming this Spring (Managing Inquiries and Complaints from Plan Beneficiaries); Proposed changes for Public & Broader Public Sector pension plans (proposed amendment to Regulation 909); Additional FAQs from the last webinar (Management and Retention of Pension Plan Records); Pension Assessments Mailed ( ); O. Reg. 19/11 filed (relating to Abitibi pension plans); January 2011 Postings 2011 Pension Unlocking Forms (revised forms); 2011 Financial Hardship Unlocking Forms (revised forms); Form 5.3 FAQs (Application to a Financial Institution for a one-time Withdrawal or Transfer of up to 50% of the Money in an Ontario Schedule 1 LIF or LRIF January 1, 2011 to April 30, 2012); Ontario Expert Commission on Pensions (link to Ministry of Finance updates); December 2010 Postings Bill 120 FAQs (PBA changes effected following Royal Assent on December 8, 2010); 2011 LIF and LRIF Maximum Annual Income Payment Amount Table; Consultation Inquiries and Complaints Policy; Updated locked in account FAQs; Bill 135 received Royal Assent (Schedule 8 amendment to the FSCO Act expanding delegation power of the Superintendent under s. 100 of the PBA); Bill 120 received Royal Assent (PBA amendments); PEI tables bill to protect private sector pension plans (new Pension Benefits Act introduced); A Insurance Company Not Administrator for Guaranteed Annuity Contracts (replaces pension policy A Insurance Company Not Administrator for Annuity Contracts). COURT MATTERS: 1. Slater Stainless Corp. Morneau Sobeco Partnership Limited, as administrator of two union plans formerly sponsored by Slater Stainless Corp. (the CAW plan and the USWA Local 7777 plan), commenced a civil suit in the Ontario Superior Court of Justice against AON Consulting Inc. and J. Melvin Norton in November The claim is for damages for negligence and breach of fiduciary duty. AON and

3 Mr. Norton have applied to the Commercial List for leave to bring third party claims in the civil action against various former directors and officers of Slater. In response, the Slater directors and officers brought a cross motion to have the third party claims struck. These motions were heard by the Commercial List on March 7 and 8, The Slater officers and directors have also brought a motion to the Commercial List for a declaration that the Superintendent must indemnify them in any third party claim, based on Minutes of Settlement reached in the Claims Bar proceeding under the Companies Creditors' Arrangement Act in December In response, the Superintendent has brought a cross motion to have the Slater motion stayed or struck. These motions were adjourned sine die pending the result in the two third party motions mentioned above. On April 13, 2007, the Court released its decision on the first two motions, holding that the motions for leave to bring the third party claims were dismissed. AON and Mr. Norton both filed Notices of Appeal respecting this decision with the Court of Appeal. The Court of Appeal heard the appeals on February 21, 2008, and released its decision on March 19, The Court held that the third party claims could be initiated by AON and by Mr. Norton. On May 20, 2008, the Slater directors and officers filed a motion for leave to appeal the Court of Appeal s decision with the Supreme Court of Canada. The Supreme Court dismissed the motion with costs on September 4, The two indemnification motions were heard by the Superior Court of Justice (Commercial List) on November 21, 2008 and the Court reserved its decision. The Court released its decision on May 27, The Court dismissed both motions, finding that there was a genuine issue for trial with respect to the indemnification issue. The Slater directors and officers have filed a motion for leave to appeal with the Court of Appeal. On May 31, 2010, the Slater officers and directors served a Fourth Party Claim against Her Majesty the Queen in Right of Ontario as represented by the Superintendent of Financial Services. The Plaintiff Morneau delivered its Affidavit of Documents on April 8, National Steel Car On February 6, 2006, the Superintendent issued a Notice of Proposal to National Steel Car Limited ordering it to credit Mr. Taso Ristic with service under the Pension Plan for Employees of National Steel Car Limited for periods while Mr. Ristic was receiving a partial permanent disability pension from the Workmen s Compensation Board while on lay off. The plan is the Pension Plan for Employees of National Steel Car Limited. National Steel Car requested a hearing. The pre-hearing conference was held on June 5, 2006, and the hearing on November 1, The panel reserved its decision. On February 16, 2007, the panel issued a decision ordering the Superintendent not to proceed with the Notice of Proposal, finding that the term workmen s compensation benefits in the plan did not include time on lay off while receiving permanent disability benefits from the Workmen s Compensation Board (as it then was). Mr. Ristic has appealed this decision to the Divisional Court. No date is yet set for the appeal. 3. Victorian Order of Nurses On February 8, 2008, the Superintendent issued a Notice of Proposal to the Victorian Order of Nurses for Canada (the VON ) proposing to refuse to approve various partial wind up reports relating to branches of the VON, to order the VON to pay certain amounts into the fund for the

4 VON Canada Pension Plan with respect to these partial wind ups, and to prepare and file new partial wind up reports. The VON requested a hearing. A pre-hearing conference was held on May 29, Party status was granted to Six Separate Branches of the VON and to the Ontario Public Service Employees Union. A settlement conference was held on June 13, 27 and December 10, The pre-hearing conference continued on July 15, October 8, November 7, and December 1 and 11, The matter did not settle. The hearing was held on April 1 to 3 and 6 and 7, The panel reserved its decision. The decision was released on July 3, The panel held that it had no jurisdiction to deal with the status of the Six Separate Branches. The panel also held that VON Canada was not the employer with respect to the insolvent branches and that the insolvent branches were the employers. Appeals were filed in Divisional Court by the Ontario Nurses Association and by the Ontario Public Service Employees Union with respect to this decision. The appeals were dismissed for delay in January The parties are working on a settlement of the issues. 4. Participating Co-Operatives of Ontario Trusteed Revised Pension Plan A former member of the Participating Co-operatives of Ontario Trusteed Revised Pension Plan appealed a decision of the Tribunal dated July 29, 2010 dismissing his request for review and reconsideration of a decision of the Tribunal dated May 13, The May 13, 2010 decision of the Tribunal dismissed the member s claim for the payment of additional amounts from the Plan upon wind up of the Plan. The appeal was settled and withdrawn on January 5, MATTERS BEFORE THE FINANCIAL SERVICES TRIBUNAL: 1. Canada Life Assurance Company Canada Life Assurance Company requested a hearing respecting the Superintendent s Notice of Proposal issued on January 30, 2007, proposing to order a partial wind up of The Canada Life Canadian Employees Pension Plan with respect to members who ceased to be employed by Adason Properties Limited during the period November 1, 1999 to February 28, The Tribunal held a pre-hearing conference on June 18, The pre-hearing conference continued on October 9, The hearing dates were adjourned to November 24, 26, 27, and 28, 2008, and have been further adjourned to March 3 to 6, The hearing dates have been adjourned sine die to permit settlement discussions. The pre-hearing conference continued on March 26, 2009, December 9, 2009, June 1, 2010, February 23, 2011, and will continue on October 24, Canada Life Assurance Company (Pelican Food Services Limited) On September 19, 2008, the Superintendent issued a Notice of Proposal proposing to order a partial wind up of The Canada Life Canadian Employees Pension Plan in relation to those members and former members who ceased to be employed by Pelican Food Services Limited between February 23 and 28, Canada Life requested a hearing. A pre-hearing conference was held on January 6, 2009, March 26, 2009, December 9, 2009, June 1, 2010, February 23, 2011, and will continue on October 24, 2011.

5 3. York University Pension Plan On September 11, 2008, the Superintendent issued a Notice of Proposal to refuse to issue an order to require York University, the administrator of the York University Pension Plan, to modify how it administers the adjustment to pension benefits resulting from favourable returns on the investments of the Plan. The York University Faculty Association requested a hearing. The pre-hearing conference was held on February 2, 2009 and continued on May 15, The hearing was held on February 23, 2010 and the panel reserved its decision. The panel released its decision on July 9, 2010 and upheld the administrator s interpretation of the Plan and the Notice of Proposal. Subsequent to the decision, the parties filed written submissions (on August 26, 31 and September 10, 2010) concerning the jurisdiction of the Tribunal to deal with an additional issue raised by the Applicant concerning the application of the adjustment mechanism for mid-year retirees. The panel released its decision on January 24, 2011 refusing jurisdiction to hear the additional issue. 4. Imperial Oil Limited (Proposed Partial Wind Up) On January 16, 2009, the Superintendent issued a Notice of Proposal proposing to order a partial wind up of the Imperial Oil Limited Retirement Plan under section 69(1)(e) of the PBA with respect to members and former members who ceased to be employed by Imperial Oil at its location at 111 St. Clair Avenue West in Toronto during the period from September 28, 2004 to June 30, Imperial Oil requested a hearing. A pre-hearing conference was held on April 23, 2009, and continued on July 28 and September 3, At the July 28 pre-hearing conference party status was granted to the 111 Pension Rights Association and to four individual former members. At the September 3 pre-hearing conference, a motion was brought by the 111 Pension Rights Association to add an additional ground under section 69(1)(d) of the PBA for a partial wind up. The panel heard this motion and reserved its decision. During the week of September 14, three of the four individuals who had received party status withdrew their applications. On September 23, 2009, two of the three panel members issued a decision on the motion, holding that the Tribunal has no jurisdiction to add an issue that is not in the Notice of Proposal. The third panel member concurred in the result but for different reasons. On November 24, 2009, a motion was brought by the 111 Pension Rights Association to adjourn the hearing (which was set for December 14-18, 2009) so that the Superintendent s examination into whether a partial wind up under section 69(1)(d) of the PBA should be ordered could be concluded and the two issues eventually heard together. The hearing was ordered adjourned sine die, with a conference call scheduled for March 23, On January 6, 2010, the Superintendent issued a Notice of Proposal to partially wind up the Plan under section 69(10(d) of the PBA. Imperial Oil requested a hearing. At the pre-hearing conference on April 12, 2010, it was agreed to consolidate the two proceedings and to hear them together as one. The pre-hearing conference continued on July 9, At that time, Imperial Oil and the Association advised that they wished to proceed to a settlement motion. The settlement motion was scheduled for October 28 and 29, 2010, with a pre-hearing conference in order for any members to request standing on October 4, 2010.

6 No members requested standing at the pre-hearing conference on October 4. The panel heard the settlement motion on October 28 and reserved its decision. The settlement was agreed upon by 36 of the 39 affected members. On December 8, 2010, the decision was released. The panel held that the settlement was approved and directed the Superintendent not to carry out the Notices of Proposal. 5. Corby Distilleries On December 11, 2008, the Superintendent issued a Notice of Proposal to refuse to register an amendment to the Pension Plan for Salaried Employees of Corby Distilleries and Affiliated Companies. Corby Distilleries requested a hearing. A pre-hearing conference was held on April 23, 2009, and was adjourned to June 17, 2009, October 23, 2009, February 18, 2010, May 25, 2010, July 26, 2010, September 12, 2010, December 13, 2010, February 23, 2011, April 4, 2011 and most recently to May 19, 2011 to accommodate settlement discussions between the parties. 6. Residential Painting Contractors Association On May 20, 2009, the Superintendent issued a Notice of Registration of Amendment to the International Union of Painters and Allied Trades Province of Ontario Pension Plan. The Residential Painting Contractors Association requested a hearing in respect of the Notice of Registration. A pre-hearing conference was held on December 4, The Trustees of the Plan brought a preliminary motion challenging the jurisdiction of the Tribunal to hear the matter. The preliminary motion was heard on February 16, The panel released it decision on the motion on February 25, The panel dismissed the preliminary motion. A Pre-Hearing Conference was held on May 19, 2010 and hearing dates were scheduled for November 25, 26, December 9 and 10, The hearing dates were cancelled to accommodate settlement discussions. The matter was settled and the hearing request was withdrawn on March 22, Imperial Oil Limited The Superintendent issued a Notice of Intended Decision on January 12, 2011, to partially wind up the Imperial Oil Retirement Plan effective as at June 30, 2006, in relation to the 3 former members of the Plan who ceased to be employed by Imperial Oil Limited at its 111 St. Clair Avenue West, Toronto location during the period from September 28, 2004 to June 30, 2006, and who are expressly not affected by the settlement made between Imperial Oil and The 111 Pension Rights Association as incorporated into the reasons for decision in the decision of the FST dated December 8, 2010 (see #4 above). Imperial Oil requested a hearing. The pre-hearing conference is scheduled for May 18, Request to Withdraw Funds from Locked-In Accounts No significant new decisions. PROSECUTION MATTERS: 1. Tristar Electric Inc. On March 21, 2011, the Superintendent laid 12 charges against Tristar Electric Inc. as administrator

7 of the Staff Pension Plan for Shareholder Employees of Tristar Electric Inc. for failing to file financial statements and annual information returns, and failure to pay certain filing fees. The first appearance was on April 21, 2011 and the matter was adjourned to April 28, 2011 to be spoken to. 2. Nova Tool & Mold Inc. On March 21, 2011, the Superintendent laid 12 charges against Nova Tool & Mold Inc. as administrator of The Group Retirement Plan for Employees of Nova Tool & Mold Inc. for failing to file financial statements and annual information returns, and failure to pay certain filing fees. The first appearance was on April 21, 2011 and the matter was adjourned to May 12, 2011 to be spoken to.

Changes To The Rules For Ontario Locked- In Accounts

Changes To The Rules For Ontario Locked- In Accounts Page 1 of 6 Advanced Search Home Sitemap Forms Online Services Français Contact Insurance Pensions Hearings & Decisions Licensing & Registration Who We Regulate About FSCO Publications Home > Pensions