This class proceeding concerns the improper use of surplus funds in a pension plan to pay for administrative expenses and employer contributions to a related defined benefit plan.
The claim alleges that the Hudson’s Bay Company Limited (“HBC”), Royal Trust Corporation and Investors Group Trust Co. Ltd. unlawfully diverted surplus assets of the Simpsons Limited Supplementary Pension Plan (the “Plan) to fund the separate defined contribution plan for Zellers and Kmart employees. It is alleged that HBC, Royal Trust Corporation and Investors Group Trust Co. Ltd. committed breaches of trust, breaches of fiduciary duties and undertook an unlawful diversion of surplus assets in relation to the administration of the Plan.
The action was certified as a class proceeding by the Ontario Superior Court by order dated April 28, 2005. The class of persons this action represents is detailed in the Certification Order, below. Generally, the class is comprised of all members, retirees and beneficiaries of the Plan as of the 1st of January, 1988, now known as the Dumai Pension Plan.