This proceeding concerns the ownership of surplus upon the partial wind-up of a pension plan.
As a result of the closure of the London, Ontario facilities of Bendix Heavy Vehicle Systems and Garrett Canada in 1992, a partial wind-up of the Allied Signal Canada Inc. Retirement Plan for Salaried Employees (the “Plan”) was declared. The partial wind-up affected 43 Plan members.
At the time of the wind-up, the Plan had accumulated a surplus. In July, 1998, the then Ontario Superintendent of Pensions (the “Superintendent”) requested that the company file an application to distribute surplus. The company did not respond.
In 1999, a group of former Plan members formed the Honeywell ASCa Employee Pension Surplus Committee (the “Committee”) for the purpose of making inquiries regarding the surplus in the Plan at the time of the partial wind-up. The Committee retained the law firm of Koskie Minsky LLP to advise them and represent affected members before the provincial pension regulator.
As a result of the 2004 Supreme Court decision in Monsanto Canada Inc. v. Ontario (Superintendent of Financial Services), the Committee continued to pursue proceedings before the regulator, who in December, 2005, issued a ruling proposing to order a distribution of surplus to affected members. The company commenced an appeal of this proposal.
In 2006, an agreement was reached between the parties, pursuant to which the surplus in the Plan attributable to the partial windup would be shared, with 66.6% of the distributable surplus, net of certain expenses, payable to affected members, and 33.3% payable to the company. The implementation of the agreement is subject to regulatory approval.
The surplus distribution to members was finalized during the month of February, 2009