On September 18, 2012, the Superintendent of Financial Services for the Province of Ontario (the “Regulator”) appointed PricewaterhouseCoopers Inc. as the Administrator of the Employee Retirement Plan of Stone & Webster Canada L.P. as a result of the bankruptcy of Shaw Canada L.P. (the “Company”). The Regulator has ordered the Plan to be wound up effective August 31, 2012 (“Wind Up Date”).
We have written to all the members who have pension entitlements under the Plan. Please contact us immediately at 1-877-949-7337 if you have not received any correspondence from us.
The Plan is a defined benefit (“DB”) and defined contribution (“DC”) combination pension plan. Please read below regarding the wind up status for the corresponding provisions.
Plan Funded Position and the Pension Benefits Guarantee Fund
As at the Wind Up date, the estimated funded ratio for the DB provision is 70%. We have applied to the Pension Benefits Guarantee Fund (the “Guarantee Fund”). 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. Please see attached Appendix A for details regarding the Guarantee Fund rules.
Monthly pension payments to current pensioners will continue during the wind up process; however, pension payments to pensioners in pay which are over $1,000 per month will not be fully guaranteed by the Guarantee Fund and will be cutback effective March 1, 2013. Details will be provided to all the pensioners in writing.
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 for the DB provision has been prepared, submitted to and approved by the Regulator and, if applicable, funding received from the Guarantee Fund. Once the Wind Up Report for the DB provision has been filed, we will issue Pension Option Forms (“POF”) to members with a DB pension benefit. We anticipate that the POFs will be issued in the fall of 2013.
If you wish to receive your pension benefits in the form of a 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 from the date of our appointment.
We have requested the Regulator to allow us to put members into pay on an interim basis upon request. Members who are at retirement age and wish to commence their monthly pensions may submit their retirement request in writing to us, along with a copy of the member’s and spouse’s proof of age documents. Once we receive the approval from the Regulator, we will commence pension payments as per requests. If a member requests to be put into pay, the member will not be allowed to elect a transfer at a later date.
Distribution of Pension Benefits
On January 4, 2012, a DC POF was mailed to each member who is entitled to a DC pension benefit. Members should submit their completed POF as soon as possible and within the 90-day statutory election period.
Members are not allowed to transfer the account balance out of the Plan until the Wind Up Report for the DC provision has been filed with, and approved by, the Regulator. We anticipate that the DC pension benefits will be distributed to members in April 2013, provided that we receive the DC Wind Up Report approval and the completed POF from the majority of the DC members.
We have made a priority claim in the bankrupt estate for any unremitted current service cost contributions for both the DB and DC components of the Plan. We will also be making a claim for the full deficit of the DB component of the Plan.
Plan members are not required to submit individual claims in respect of their pension benefit entitlements in the Plan.
|Beneficiary Designation Form - English|
|Beneficiary Designation Form - French|
|Consent Form - English|
|Consent Form - French|
|Spousal Declaration Form - English|
|Spousal Declaration Form - French|
|Life Income Fund Declaration|
|Lock-in Agreement - English|
|Lock-in Agreement - French|
|T2151 Form - English|
|T2151 Form - French|
|T2151 Form Sample - English|
|T2151 Form Sample - French|
|Spousal Waiver Form - Alberta|
|Spousal Waiver Form - New Brunswick|
|Spousal Waiver Form - Ontario|
|Spousal Waiver Form - Quebec - English|
|Spousal Waiver Form - Quebec - French|
|Declaration of Status Form - English|
|Declaration of Status Form - French|