SKD Company Pension Plan for Hourly Employees of the Milton Division
The Wind Up Report, which determines the amount of pension benefits payable to members, has been submitted to, and approved by, the Pension Regulator.
The Pension Benefits Guarantee Fund, which tops up pension benefits in underfunded plans for members who meet the necessary criteria, has been declared to apply to the plan and we have received interim funding from the Pension Benefits Guarantee Fund.
SKD Company (the "Company") was placed into bankruptcy on January 11, 2011. We have been informed by the Trustee in Bankruptcy, Duff & Phelps Restructuring Inc. (formerly RSM Richter Inc.) that there may be some assets available in the bankrupt estate of the Company to respond to the various claims. We have filed a Proof of Claim with the Trustee in Bankruptcy for the amount of the Plan deficit as an unsecured creditor. Shortly after we filed our claim in March 2011, the Ontario Court of Appeal released a decision on a recent case, known as “Indalex”, which appears to elevate claims on behalf of pension plans of insolvent sponsors, in certain situations, to have a priority over some other claimants, and in particular, priority over unsecured creditors.
As a result of the Indalex case and the delay in determining the recovery on the claim, in September 2011 we proceeded to make an interim distribution to members who had returned their completed Pension Options Form and had made a transfer election. We intend to proceed with another interim distribution by the end of August 2012 for any members who have returned their completed Pension Options Form and have made a transfer election.
The Indalex case has been appealed to the Supreme Court of Canada and a decision of the court is pending.
The Trustee in Bankruptcy has informed us it will not hold claim settlement discussions before a decision is made by the Supreme Court of Canada in the Indalex case.
The amount of the recovery, if any, and the timing to receive the recovery is unknown at this time.
Assuming we receive a recovery, a revision to the approved Wind Up Report will be prepared and filed with the Pension Regulator for approval. The revision will update the amount of pension benefits that will be payable to plan members with non guaranteed benefits as a result of any additional funds received by the plan.
Once the claim for the Plan deficit is resolved, and if any additional funds are received from the bankrupt estate of the Company, we will make a second and final distribution to members with non guaranteed benefits. We anticipate this will not take place before late 2013.
For those members who have not returned their Pension Options Form please do so as soon as possible.
Transfer Election Forms
Pension Election Forms
Marriage Breakdown Forms