BCE Pension Surplus
This proceeding concerns the ownership of surplus upon partial wind-up of a pension plan.
BCE went through a number of sales, divestitures and downsizings in the 1990s which resulted in the termination of a significant number of employees. In connection with these divestitures and downsizings, BCE implemented three partial wind-ups of the Pension Plan. The three partial wind ups were effective December 31, 1993, October 15, 1996, and December 31, 1999.
As a result of the Supreme Court of Canada’s decision in “Monsanto”, BCE is required to deal with the distribution of surplus assets attributable to the Ontario portion of the three partial wind ups.
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Latest Developments
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August 26, 2013
We are pleased to advise that 99% of the surplus funds have now been distributed by BCE to eligible members of the sharing group. Eligible “Option B” members will be receiving their $1,000 payments in the next couple of weeks.
Please note that with the surplus distribution substantially complete, the activities BCE Ontario Pension Surplus Committee have now concluded. The Committee has met for the final time and has ceased further activities. Going forward, if you have questions, you may contact Koskie Minsky LLP at 1.800.451.3225 or BCEsurplus@kmlaw.ca.
As its legacy, the members of the Committee are very pleased to announce “The Rob Adlam Initiative” as part of the Canadian Mesothelioma Foundation. As you may recall, Rob Adlam was a founding member of the member negotiating committee in 1999. Sadly, Rob passed away from mesothelioma in 2009 and did not survive to see the successful completion of this project. The Rob Adlam Initiative has been set up by the Committee members in remembrance of Rob’s leadership, advocacy and selflessness in ultimately succeeding in the surplus associated with the BCE Pension Plan being distributed at this time.
In appreciation of Rob Adlam and in honour of his family, the initiative aims to raise a total of $100,000 to fund the ongoing efforts of the Canadian Mesothelioma Foundation to support mesothelioma patients and their families, and to educate and build capacity relating to the disease amongst Canadian medical practitioners. Each of the Committee members is contributing $150 and Koskie Minsky is also making a donation.
The Committee members are requesting your donations as an appropriate wind up for celebrating the success enjoyed in large measure to Rob’s leadership, serving as a fitting end to share our success in our project with a cause that mirrors what turned out to be Rob’s final project. To access the Canadian Mesothelioma Foundation (CMF) website :http://cmfonline.org/
Once on the CMF Homepage you can click on the Menu Tab on the left hand side ” The BCE Rob Adlam Initiative (RAI)” to read about this initiative and how to donate.Your support of the RAI initiative is greatly appreciated. As the Committee does not have contact information for all the affected plan members, your help in spreading the word about this campaign is encouraged.
Thank you to everyone for your patience in seeing this project come to a successful conclusion.
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February 6, 2013
We have been advised that some members have directed BCE to make direct RRSP deposits with their surplus payments. BCE has told us that it is working on the payments and will try to get them out before the end of February. However, as advised in the February 5 posting below, BCE may not be able to do so in all cases. Surplus payments that are directly deposited into an RRSP after February 28, 2013 may be eligible for tax deductibility on the member’s tax return for the 2013 tax year; direct deposits to an RRSP on or before February 28, 2013 may be eligible for tax deductibility on the member’s tax return for the 2012 or the 2013 tax year. You should consult with a financial advisor if you have further questions about the tax treatment of your surplus payment.
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February 5, 2013
We are very pleased to advise that the Superintendent of Financial Services has now issued a Notice of Intended Decision consenting to BCE’s application to distribute the surplus in connection with the three partial wind ups. We have been advised by BCE that it is accelerating its process to commence making surplus payments to eligible plan members. BCE will be processing the payments as soon as possible and hopes to make these payments by February 28, 2013. However, given the short notice of the timing involved, BCE cannot guarantee that payments will be received by this date. BCE has advised us that it will be processing the payments based on the option forms completed by members last year. We thank you for your continuing patience in this matter, and we will update this site further when we have confirmation that the payments have commenced.
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December 10, 2012
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.
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October 25, 2012
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.
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September 12, 2012
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.
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July 17, 2012
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.
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March 23, 2012
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.
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December 2, 2011
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.
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November 25, 2011
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.
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September 29, 2011
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.
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June 27, 2011
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.
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December 17, 2010
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.
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April 20, 2010
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.
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August 26, 2013
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News Releases and Reports
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Contacts
