On November 29, 2012, the Superintendent of Financial Services for the Province of Ontario (the “Regulator”) appointed PricewaterhouseCoopers Inc. as the Administrator of the Pension Plan for Employees of Dunline Rubber Products Company who are Members of Local 27 (CAW).
Our role as Administrator is to continue to administer the Plan, to take the steps needed to complete the wind up of the Plan and to distribute members’ pension benefits. The Plan will be wound up effective July 1, 2008 according to the Pension Benefits Act (Ontario), 1990 (the “Act”).
We have contacted the various service providers for the Plan and have requested their help in providing us with member data and other information required to administer and wind up the Plan. We are in the process of gathering and reviewing the data and information. We will work with the various service providers to identify the members who are owed pension benefits and to calculate their pension benefits in accordance with the Plan and applicable provincial pension laws.
Plan Funded Position and the Pension Benefits Guarantee Fund
A preliminary review of the Plan indicates that the Plan may not have sufficient assets to pay all of the pension benefits in full. We plan to apply to the Pension Benefits Guarantee Fund (the “Guarantee Fund”), which may provide some additional funds. For members, former members and pensioners who meet certain tests, if the Guarantee Fund is declared to apply to the Plan, it will pay for all or part of the member’s pension that the Plan is unable to pay.
Further information regarding the funded status of the Plan and how the Guarantee Fund may apply to the Plan will be provided to members.
Monthly pension payments to current pensioners will continue during the wind up process. Further information will be provided to pensioners whose monthly pension amounts may be adjusted in accordance with the Plan’s funded status.
Distribution of Pension Benefits/Retiring During the Wind Up
The distribution of pension benefits to members cannot be completed from the Plan until all the Plan data has been received and confirmed, and the Wind Up Report has been prepared, submitted to and approved by the Regulator and, if applicable, funding received from the Guarantee Fund.
If you wish to receive your pension benefits in the form of lump sum transfer, you must wait until the Wind Up Report is approved and the necessary funding is received from the Guarantee Fund. We expect this will be completed in approximately 18 - 24 months.
Once we have obtained and confirmed the member data, we will determine an estimated funded ratio for the Plan. Once we have an estimated funded ratio for the Plan, we will obtain an approval from the Regulator to put members into pay on an interim basis upon request. Further information and instructions will be provided in our written communication for members who are at retirement age and wish to commence their monthly pensions.
Once we obtain and review the necessary member data and Plan records, we will write to all the members and former members of the Plan to verify membership data and to provide further information regarding the wind up of the Plan.
If you have any further inquiries, please contact us on our toll-free telephone line at 1-800-431-5711.