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Marine Atlantic Inc. Pension Plan
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Updated: July 11, 2008
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Pour consulter le document en français
On June 26, 2008 the Federal Court of Appeal released its decisions and reasons
on the appeals heard on May 20, 2008. In brief, the Federal Court of Appeal
dismissed the appeals of the former MAI employees, and granted the appeals of
The Attorney General of Canada and Marine Atlantic Inc. To view a copy of the
Reasons for Judgment,
click here.
The client committee is currently considering its next steps and this website
will be updated when appropriate.
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This website has been developed by Koskie Minsky LLP
for the exclusive use of former employees of Marine Atlantic Inc. ("MAI") whose
employment were terminated as a result of the closure or transfer of the Bay of
Fundy, PEI or Labrador services in 1997 or the relocation of the Moncton head
office between 1997 and 2000.
The contents of this site are subject to solicitor-client privilege and all
rights to that privilege are expressly claimed and not waived.
Koskie Minsky LLP has developed this web site to
provide general information on litigation commenced in the Federal Court of
Canada concerning three partial terminations of the Pension Plan for Employees
of MAI that were declared in connection with the above-noted office and service
closures. This litigation was commenced by certain Plan members against MAI and
the Attorney General (Canada) and can affect the pension rights of former MAI
employees who participated in the Pension Plan.
This site is not designed to answer specific questions about individual
situations or entitlements. The information provided on these pages is not
legal advice or a substitute therefore.
Status of the Proceedings
The parties attended before the Honourable Justice Hughes of the Federal Court
in Toronto for the hearing of the three applications for judicial review on
April 23-25, 2007. Justice Hughes released reasons for judgment on May 1, 2007.
To read the decision,
click here.
In brief, the applicants successfully argued that the Superintendent of
Financial Institutions (Canada) ("OSFI") cannot approve a report filed in
respect of a partial termination of a defined benefit pension plan unless such
report provides for the proportional distribution of plan surplus at the time
of partial termination. The Court held that Section 29(12) of the Pension
Benefits Standards Act ("PBSA") requires a proportional distribution of
surplus at the time of a partial termination of a pension plan. The applicants
were successful on the substantive legal arguments put before the Court.
In respect of the termination of the Labrador Service and the Moncton
Head Office, the Court ordered that the Superintendent may not approve
the partial termination report filed by MAI. As a result, MAI must prepare and
file new partial termination report which provides for payment out of a
proportionate share of actuarial surplus existing at the time of the
termination of that part of the plan. Surplus ownership by either MAI or the
Plan members was not argued or established in this proceeding.
Justice Hughes dismissed the applications concerning Plan members affected by
the partial Plan terminations precipitated by the closure of the PEI and Bay
of Fundy services. The Court held that there was no authority for the
Superintendent to reconsider the approvals of the partial termination report
filed in respect of each termination. In addition, the applications for
judicial review of the Superintendent's approval of the reports in 1997 and
1998 were not commenced within 30 days of the decision being communicated to
affected persons, as required by section 18(1) of the Federal Courts Act, and
were therefore out of time.
All parties filed Notices of Appeal to the Federal Court of Appeal. To
access the Notices of Appeal, click here
or on the Documents button in the tab to the left. As stated above, on May 20,
2008 the appeal was heard before the Federal Court of Appeal and on June 26,
2008, the Federal Court of Appeal released its decision. To read the Federal
Court of Appeal decision,
click here.
A member report was sent in September 2007, a copy of which may be accessed here.
Other relevant documents relating to the Committee's activities and the Court
proceeding are viewable by clicking here
or on the Documents button in the tab to the left.
We will keep you informed of developments through this website and on our
hotline at 1-800-451-3225. You may also reach us via email at
maipension@kmlaw.ca, or write to us at 20 Queen Street, Suite 900, Box
52, Toronto, ON M5H 3R3.
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