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National Trust
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For more information call us at 1.800.451.3225 |
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Background / Who We Are / Why We Organized:
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Questions surrounding a large surplus in the Pension Plan for Employees of
National Trust began surfacing over 3 years ago.
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Then, National Trust Company (NTC) was sold to The Bank of Nova Scotia
(Scotiabank) effective August 14, 1997, and the matter became more urgent.
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NTC merged into Scotiabank and well over 1,100 staff were terminated or left.
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The surplus may have entered into the price paid by Scotiabank for National
Trust.
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We learned that employers (NTC and Scotiabank) have been taking a contribution
holiday for a long time, now over 15 years.
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Employee contributions to the Plan were mandatory. We had to contribute every
payday.
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We began to formally organize in early 1999. We sought and received
recommendations as to the best lawyers for our situation.
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We approached Toronto law firm, Koskie Minsky, for advice and retained them to
act for us. They have no affiliation with any banks and typically act for
employee groups.
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We have developed a database of over 2,000 names of retirees, former NTC staff
(some now with Scotiabank).
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Over 1,000 supporters have sent retainer forms and financial contribution to
Koskie Minsky and the number continues to grow.
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We believe pension plans are created for the benefit of members and should not
be viewed as hiring tools or assets, i.e. savings account, for employers
(Scotiabank in this case).
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We strongly believe NOW is the time to deal with the Pension Plan surplus which
rightfully belongs to our membership.
Status/Commentary:
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In May 2000, AFTER obtained the latest Hewitt Associates actuarial report dated
October 31, 1999, and our surplus estimations were confirmed. The surplus in
our Plan was over $140 million.
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That report states that no new members were to enter the Plan after August
1999. It also reveals that there were 707 new entrants after January 1, 1997,
at a time when National Trust, then Scotiabank, was cutting staff. We have
major questions regarding this number and other facts and have asked the Plan
actuaries for explanations.
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Scotiabank has made an application to transfer our Plan to federal jurisdiction
which we believe would make it easier to merge our Plan with the Bank's own
pension plan, to the advantage of Scotiabank. We have successfully delayed this
move to date by having the Financial Services Commission of Ontario (FSCO) halt
the attempt to move our money until Scotiabank files a plan to deal with the
surplus.
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We believe Scotiabank had hoped we wouldn't notice their actions to divert our
funds. Their senior executive (i.e. Messrs. Peter C. Godsoe and Robert W.
Chisholm) who stated, at the Bank's annual shareholders' meeting on February
29, 2000, that the Bank would treat us fairly, have apparently since changed
their mind. Their lawyer has advised us that the Bank does not plan to share
this surplus. We never did receive a direct reply from Mr. Bruce R. Birmingham
to our original October 21, 1999 correspondence on the matter.
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Scotiabank should be embarrassed taking advantage of pensioners and staff.
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The surplus developed due to investment return on employee contributions.
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If it were not for the surplus, Scotiabank would have been required to
contribute over $4.4 million in the Plan year ending October 31, 1999 (per
actuarial report), however for the 16th consecutive year, paid nothing.
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Scotiabank's normal share of contributions instead went directly to Bank
profits and, ultimately these same senior executives receive annual bonuses in
part due to the free ride the Bank takes on the backs of its NTC employees and
pensioners.
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Scotiabank could pay out over $140 million and still not have to contribute to
our Plan.
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The Bank's only action was to retain Borden Ladner Gervais, LLP (originally
Borden Elliott), a large and very expensive law firm to stall us even further.
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Scotiabank's legal fees are likely being charged to our Pension Plan (being
confirmed).
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Scotiabank's delaying tactics are NOT acceptable. We want answer$ NOW.
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Our members are not getting any younger, some are literally dying waiting for
what is rightfully theirs.
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AFTER is not prepared to be patient and we are undertaking certain legal
recourse.
Due to time and cost considerations, we ask that you direct any questions to
AFTER committee members and NOT to Koskie Minsky. Please browse through the
various documents and correspondence we have placed on this website by
"clicking" on the appropriate button. We remind you all work by members is on a
voluntary basis and every attempt is made to ensure the accuracy of the
information herein.
This website will be updated as pertinent information becomes available. Please
feel free to check periodically.
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