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Participating Co-operatives Pension Plan
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| Participating Co-Operatives of Ontario
Trusteed Revised Pension Plan (the "Plan")
Updated: July 31, 2008
OVERVIEW:
We represent the representative plaintiffs and class members in the class
proceeding described below. A settlement reached in the class proceeding, which
was approved by the Ontario Superior Court of Justice, has now been completed
and the net settlement proceeds have been paid into the Plan.
We also represent a group of Plan members and retirees in a mediation process
related to the Financial Services Tribunal proceeding, and in which they were
granted full party status, described below. A settlement reached in this
matter, which was incorporated in an Order of the Financial Services Tribunal,
has also now been completed and the settlement proceeds paid into the Plan.
Along with the completion of both settlements, the Province of Ontario also
contributed $20 million to the Plan.
The Superintendent of Financial Services has appointed Morneau Sobeco LP to
administer the wind-up of the Plan and adjust pension benefits on an interim
basis initially and later on a final basis to take into account the revised
funded ratio of the Plan resulting, in part, from the settlement proceeds. To
this end, Morneau Sobeco LP has recently written directly to all Plan members.
If you are a Plan member and have any questions about your pension entitlements
and/or have not received a letter from Morneau Sobeco LP, please contact
Pauline Frenette of Morneau Sobeco LP at (416) 445-2700 extension 4030 or
Colleen MacDonald at extension 3370. Plan Members in Canada, who reside outside
of Metropolitan Toronto, may contact Pauline or Colleen at 1-888-667-6328.
CLASS PROCEEDING:
In February 2003, Koskie Minsky LLP commenced this
action on behalf of the representative plaintiffs and all members, former
members and other persons entitled to payments under the Participating
Co-operatives of Ontario Trusteed Pension Plan (FSCO Reg. No. 345736) (the
"Plan") against the current and former trustees of the Plan, a former
investment consultant and asset manager, the former and current Plan
custodians, the actuaries and the legal advisors of the Plan.
In 2002, the Financial Services Commission of Ontario issued an
internal report that raised serious questions about the Plan's lack of
operational policies and procedures in the area of investment policies and
practices, particularly dealings involving derivatives. The report also
suggested there was inadequate supervision of agents, potential conflicts of
interest regarding these agents and potential contraventions of the Ontario Pension
Benefits Act.
The Plaintiffs' allegations are set out in the
Fresh as Amended Amended Statement of Claim issued November 1, 2004.
The Defendants' responses to these allegations are contained in the various
Statements of Defence and Counterclaims/Crossclaims, which are available under
Court Documents.
The action was certified as a class proceeding by
Order of Justice Winkler dated February 10, 2005. At that time, the
action was also dismissed or discontinued as against some defendants, including
the actuaries.
Class members were sent a
Notice of Certification in April 2005, indicating, among other things,
that Class Members were entitled to opt-out of the class proceeding by
delivering written notice to Koskie Minsky LLP on or before June 30, 2005.
The Plaintiffs and Defendants completed documentary and oral discoveries in
January 2006.
Following discoveries, the parties' lawyers began preparing for the common
issues trial while engaging in various settlement discussions.
A proposed settlement was reached in the class proceeding ("Proposed Class
Proceeding Settlement"). Details of the Proposed Class Proceeding Settlement
were provided in the Notice of Hearing to Propose Settlement of Class
Proceeding ("Class Proceeding Notice"), which was approved by Order of the
Court dated February 13, 2008. These documents can be viewed by clicking here.
The Settling Parties sought and obtained the Court's approval of the Proposed
Class Proceeding Settlement on April 16 and 17, 2008.
FINANCIAL SERVICES TRIBUNAL PROCEEDING:
In February 2004, the Trustees of the Plan took the position that the Plan was
no longer financially viable and adopted an amendment proposing to decrease
Plan Members' benefits accumulated prior to March 31, 2003 and terminate the
Plan effective March 31, 2003 (the "Proposed Amendment").
In April 2006, the Deputy Superintendent, Pensions issued a
Notice of Proposal to the Board of Trustees of the Plan (the "Board of
Trustees") and nineteen employers who participated in the Plan (the
"Employers"). As part of the Notice of Proposal, the Deputy Superintendent,
among other things,
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refused to register the Proposed Amendment;
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ordered the Board of Trustees to refrain from administering the Plan in
accordance with the Proposed Amendment;
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ordered the Employers to make payments into the fund to eliminate the Plan's
unfunded liability;
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refused to approve a wind up report filed by the Trustees dated February 28,
2004; and
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ordered the Trustees to prepare and file a new wind up report.
The Notice of Proposal was later
amended to include four additional participating employers.
In response to the Notice of Proposal, the Board of Trustees and certain
Employers requested a hearing before the Financial Services Tribunal (the
"Tribunal"). In addition, some current and former members of the Plan sought
and obtained full party status before the Tribunal.
In December 2006, the parties to the proceeding began mediating the issues with
the assistance of Mediator Leslie Macleod, appointed by the Ontario Ministry of
Finance. Based on a
written commitment from the Ontario Ministry of Finance to contribute
$20 million to the Plan, subject to certain conditions, the parties reached an
agreement in principle on September 7, 2007 to try to resolve all outstanding
issues as quickly as possible.
A proposed settlement was reached in respect of the proceeding before the
Financial Services Tribunal (the "Proposed FST Settlement"). A summary of the
terms of the Proposed FST Settlement were set out in the Notice of Hearing
Regarding Proposed Settlement of Financial Services Tribunal Proceeding ("FST
Notice"), which can be viewed by clicking here.
The Parties sought and obtained an Order of the Financial Services Tribunal
incorporating the terms of the Proposed FST Settlement on March 31, 2008.
FURTHER INQUIRIES:
To find our more about class actions, please
click here and refer to our Frequently Asked Questions ("FAQs"). If you
would like further information about the completed legal proceedings, please
contact us at cooperativespension@kmlaw.ca.
If you need further information about your pension entitlements, please contact
Pauline Frenette of Morneau Sobeco LP at
PFrenette@morneausobeco.com.
DISCLAIMER:
This website is intended to provide general information only. Despite our
efforts, it is not always accurate and complete and should not be relied upon.
This website does not offer legal advice. It does not create a
solicitor-client, fiduciary or other relationship. It does not eliminate the
need to obtain timely independent legal advice.
Communications facilitated by this website will not be treated as private,
privileged or confidential. They do not create solicitor-client, fiduciary or
other relationships.
The Court, rather than this firm, ultimately decides who will be included as a
class member in a class action.
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