BCE Pension Surplus

As of today, the Superintendent has not made any decision on BCE’s surplus withdrawal application, which was filed in August. Neither has the Superintendent expressed any concern or issues with anything in the application. We have been told, after writing to FSCO, that they are still reviewing the application. As a result of these developments, we can advise that it is virtually impossible for payments to commence in 2012. As a result, all members should expect that any surplus payments will be made, assuming a timely decision from FSCO late this month or in the new year, in the Q1 of 2013. We will, of course, keep you updated including on this website as soon as there is a material development on the progress of the distribution. We at Koskie Minsky LLP, and the Member Committee, wish you and your families a happy holiday season.

We are hopeful that FSCO will approve the surplus withdrawal application by year-end, 2012.  If that occurs, there is a possibility that BCE would be able to make the surplus payments before year-end. However, it is realistic to consider that the surplus distribution will be made in the first quarter of 2013.

Please note that BCE has no plans to send out new Option Election Packages.  If the FSCO’s delays in approving the application are longer than usual, BCE may reconsider this position. For now, members should assume that there will not be an opportunity to revise their surplus payment method.

We are pleased to advise that BCE Inc. has filed its application to the Superintendent of Financial Services to withdrawal surplus from the BCE Inc. Pension Plan pursuant to the Surplus Sharing Proposal previously approved by the members of the Sharing Group. This application is currently being reviewed by the regulator and we are now awaiting regulatory approval. Once regulatory approval is received, BCE will be in a position to commence the surplus distribution process in accordance with the Surplus Sharing Agreement. We are hopeful that FSCO will approve the application by year end, 2012 and, if that occurs, the surplus distribution should be made in the first quarter of 2013.

Members of the surplus sharing group should soon receive from BCE their surplus election package which requests that they make an election as to how they wish to receive their share. The Option Election Form and any required documents must be returned to BCE by August 31, 2012. Please note that in order to keep administrative costs to a minimum, the Option Election Form only contemplates a contribution to the RRSP of the member of the surplus sharing group, not a spousal RRSP.

We are pleased to advise that the Surplus Sharing Agreement has now been executed. The next steps in this process will be to prepare and file an Application for Regulatory Approval for Surplus Withdrawal and to transmit the Surplus Elections Statements to eligible members.

If no unforeseen regulatory obstacles are encountered, it is anticipated that the surplus distribution will take place in autumn of this year.

We are pleased to report that as of December 2, 2011, the Proposal is supported by over 96% of the 1993 PWU group, 71.3% of the 1996 PWU group and 76.4% of the 1999 PWU group.

The Member Committee is very pleased with the responses and member attention given to this important project. While we are satisfied that we have reached the two-third threshold in each of the three PWU groups, there are many steps ahead over the coming months that must be met before any distribution of surplus under this Proposal can be made. We will update you on this website as major developments lead up to an anticipated distribution in mid-late 2012. Congratulations, thus far, to all those who helped secure member support for the proposal and in particular the Committee members who have volunteered many hours speaking to others and working toward this common end.

In late September, eligible members were mailed an information package concerning the BCE surplus sharing proposal covering the pension plan’s 1993, 1996 and 1999 partial wind ups. In late October, we held three information meetings, in Toronto and Ottawa.

We are pleased to report that as of November 25, the Proposal is supported by over 95% of the 1993 PWU group, 58% of the 1996 PWU group and 67% of the 1999 PWU group. In order for the Proposal to proceed, there must be two-thirds (66.7%) support from each of these groups. We are receiving more forms on a daily basis, and we are hopeful that we will reach the support threshold soon.

Members of the Surplus Sharing Group who have not yet submitted their Authorization and Retainer Forms (Form E) are encouraged to do so as soon as possible. If you have not received your information package, please contact Koskie Minsky LLP at its toll free number, 1-800-451-3225 or by email at BCEsurplus@kmlaw.ca.

Should you have any questions relating to the surplus sharing proposal please contact Koskie Minsky LLP, toll-free 1-800-451-3225 or email BCEsurplus@kmlaw.ca. For questions about your pension please contact BCE Pension Services Call Centre: centre_spec@bell.ca or by fax at (514) 766-0896.

We are pleased to advise that all eligible members can expect to receive an information package in the mail in the coming days describing the details of a proposal to share and distribute the Ontario portion of the surplus in the BCE Inc. Pension Plan attributable to three partial wind ups of the plan, effective December 31, 1993, October 15, 1996 / April 1998, and December 31, 1999 (the “Proposal”). This Proposal has been reached between BCE and the BCE Ontario Employees’ Pension Surplus Committee (the “Member Committee”), with the assistance of professional advisors.

The information package will include a detailed description of the Proposal, a recommendation from the Member Committee, a letter from BCE, a personal information statement, and an Authorization and Retainer form. You will be asked to vote on the Proposal by returning the Authorization and Retainer form to Koskie Minsky LLP in the self-addressed stamped envelope, provided in the information package. This document and the envelope are coloured orange.

As an eligible member, you will be invited to attend one of three meetings in Toronto (October 24 and 25) and Ottawa (October 27) where you will be provided with an opportunity to ask questions about the Proposal from BCE and the Member Committee and their professional advisors. The times and locations of the meetings will be included in the information package. You are encouraged to carefully review the materials in the information package, and attend a meeting.

Eligible members who do not receive the information package referred to above by Friday, October 7, 2011 should contact Koskie Minsky LLP at its toll-free number, 1-800-451-3225, or by email at BCEsurplus@kmlaw.ca.

This summer, eligible members will be receiving an information package describing the details of a proposal to share and distribute the Ontario portion of the surplus in the BCE Pension Plan attributable to three partial wind ups, effective December 31, 1993, October 15, 1996 / April 1998, and December 31, 1999 (the “Proposal”). The information package will include a detailed description of the Proposal, a recommendation from the BCE Ontario Employees’ Pension Surplus Committee (the “Committee”), as well as a personal information statement and a decision form. Eligible members will also be invited to vote on the Proposal.

In addition to the materials contained in this package, eligible members will be invited to attend meetings where they will be provided with an opportunity to ask questions of the Company and the Committee as well as their respective advisors regarding the terms of the Proposal. The dates and locations of the meetings will be included in the information packages. Eligible members are encouraged to attend these meetings and review the materials sent to them.

We are targeting the mailing of the information packages in late summer, with meetings to follow in October. We will provide an update on this website when the information packages have been mailed. 

We are pleased to advise that the BCE Ontario Employees’ Pension Surplus Committee (the “Committee”, formerly the REP Steering Committee) and BCE have agreed in principle to proposed terms for a sharing of the partial wind-up surplus assets between BCE and eligible members. This is a significant milestone in this complex process. The Memorandum of Understanding includes the terms of a detailed proposal that will be recommended to the eligible surplus sharing group members for their approval.

We expect to advise the sharing group members of the terms of the Memorandum of Understanding in more detail by mail in the first half of 2011. We will be providing the sharing group members with a comprehensive information report, followed by member meetings in several locations where the surplus sharing group members will have an opportunity to ask questions of the legal counsel and the consulting actuary engaged by your Committee. The report will include an opportunity for each sharing group member to vote on whether to accept the proposal as recommended by the Committee.

Further details will be posted when available.

The parties are close to coming to terms for a comprehensive settlement. The BCE Ontario Employees’ Pensions Surplus Committee (the “Committee”, formerly the REP Steering Committee) is finalizing negotiations with BCE toward a distribution of the surplus assets upon the partial wind-ups. The Committee is actively involved in this process with the Company and consulting with its legal counsel and actuarial advisors to assist them in designing this fair proposal for the affected members. The Committee is also continuing its liaising with the office of the Financial Services Commission of Ontario (FSCO). When further information becomes available, a mailing will be issued that describes any proposal reached in more detail.