IN THE MATTER OF
the Pension Benefits Act, R.S.O. 1990, c. P.8, as amended (the “PBA”);
AND IN THE MATTER OF a Proposal of the Superintendent of Financial Services to Refuse to Make an Order under section 87(1) of the PBA relating to the CCSI Technology Solutions Corp. Retirement Program, Registration Number 0546101
46 Thurston Road
Toronto, ON M4S 2V7
CCSI Technology Solutions Corp
c/o CompuCom Systems, Inc.
7171 Forest Lane
Dallas, TX 75230
Administrator of the Pension Plan
NOTICE OF PROPOSAL
I PROPOSE TO REFUSE TO MAKE AN ORDER that the Administrator of the CCSI Technology Solutions Corp. Retirement Program, Registration Number 546101 (the “Plan”) (formerly known as the GE IT Solutions Inc. Retirement Program), pay an amount equal to the commuted value of the deferred pension to the Applicant’s retirement account.
REASONS FOR THE REFUSAL:
- The Plan is a hybrid defined benefit/defined contribution plan. However, the Applicant’s benefits are defined contribution only.
- Prior to January 1, 2005, GE IT Solution Inc. (“GEIT”) was the administrator and sponsor of the Plan. Effective January 1, 2005, CCSI Technology Solutions Corp (“CCSI”) became the administrator and sponsor of the Plan pursuant to a purchase agreement and related agreement between, inter alia, GEIT and an affiliate of CCSI. Effective February 28, 2005, the name of the Plan was changed to its current name from GE IT Solutions Inc. Retirement Program to reflect the change in Plan sponsor.
- On May 1, 2000, the Applicant became an employee of GEIT (formerly known as GE Capital Information Technology Solutions Inc.). He became a member of the Plan on May 1, 2002. The Applicant’s employment ceased on April 16, 2004. The Applicant was paid his contributions to the Plan with interest upon termination. He did not receive any amount in respect of employer contributions made on his behalf.
- Section 37 of the PBA provides that a member who is a member of a plan for “a continuous period of at least twenty-four months” as per section 37(2)(b) qualifies for a deferred pension under section 37(3). The Applicant was two weeks short of the mandatory vesting period of two years set out under section 37 of the PBA at the date of his termination. Therefore, the Applicant is not vested in the Plan and is not entitled to a deferred pension or the employer’s contributions to the Plan made on his behalf.
- The Applicant argues that the three weeks mandatory notice on termination under Part XV of the Employment Standards Act, S.O. 2000, c. 41 (the “ESA”) should be included in the Applicant’s credited service such that the Applicant meets the threshold for vesting set out in section 37 of the PBA. However, the jurisdiction of the Superintendent to make the requested order is set out in section 87 of the PBA and is triggered only where there is a contravention of the PBA, regulations or the terms of a pension plan.
- A contravention of the ESA (assuming that the Applicant’s position concerning the ESA is correct) does not constitute a contravention of the Act, regulations, nor the terms of the Plan. Moreover, there is no indication in the PBA, regulations or the Plan that the statutory notice period in the ESA should be included in the calculations of membership service credit for the purposes of section 37 of the PBA. Accordingly, the Superintendent does not have the authority to grant the requested order.
- Finally, the Applicant relies on section 74(5) of the PBA which states that the ESA’s statutory notice period is to be included in membership for a pension plan that is “wound up in whole or in part.” The Plan has not been wound up in whole or in part, therefore, section 74(5) does not apply.
- Such further reasons as may come to my attention.
YOU ARE ENTITLED TO A HEARING by the Financial Services Tribunal (the “Tribunal”) pursuant to s. 89(6) of the PBA. To request a hearing, you must deliver to the Tribunal a written notice that you require a hearing, within thirty (30) days after this Notice of Proposal is served on you.
YOUR WRITTEN NOTICE must be delivered to:
Financial Services Tribunal
5160 Yonge Street
Attention: The Registrar
FOR FURTHER INFORMATION, contact the Registrar of the Tribunal by phone at 416- 226-7752, toll free at 1-800-668-0128, ext. 7752, or by fax at 416-226-7750.
IF YOU FAIL TO REQUEST A HEARING WITHIN THIRTY (30) DAYS, I MAY (REFUSE TO) MAKE THE ORDER (AS)PROPOSED IN THIS NOTICE.
DATED at Toronto, Ontario, this 16th day of February, 2006.
K. David Gordon
Deputy Superintendent, Pensions
CC: B. Lecker - Lecker & Associates
S. Kapur - McCarthy Tétrault LLP
*NOTE—PURSUANT to section 112 of the Act any notice, order or other document is sufficiently given, served, or delivered if delivered personally or sent by first class mail and any document sent by first class mail shall be deemed to be given, served, or delivered on the seventh day after mailing.