Unilever Canada Pension Plan - January 4, 2007

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 Make an Order under section 69(1)(f) of the PBA relating to the Unilever Canada Pension Plan, Registration Number 0348367.

TO:

Unilever Canada Inc.
160 Bloor St East, Suite 1500
Toronto, Ontario
M4W 3R2

Attn:

John D. Coyne
Vice President, General Counsel and Corporate Secretary

Employer and Administrator

 

NOTICE OF PROPOSAL

I PROPOSE TO MAKE AN ORDER under section 69 (1)(f) of the PBA that the Unilever Canada Pension Plan, Registration Number 348367 (the “Plan”) be partially wound up in relation to those members and former members of the Plan who ceased to be employed by Unilever Canada Inc. (“Unilever”) as a result of the sale of the Home & Personal Care (“HPC”) facility at 21 Don Valley Parkway, Toronto to Korex Don Valley ULC.

REASONS FOR THE ORDER:

  1. Unilever is the employer and administrator of the Plan.

  2. Unilever sold the HPC facility at 21 Don Valley Parkway, Toronto to Korex Don Valley ULC (the “Purchaser”).

  3. Effective August 19, 2002, 272 plan members from the HPC facility (the “Affected Members”) ceased to be employees of Unilever and became employees of the Purchaser and ceased to accrue credited service in the Plan. No pension plan has been provided to the Affected Members by the Purchaser.

  4. Section 69(1)(f) provides that the Superintendent by order may require the wind up of a pension plan in whole or in part if “all or part of the employer’s business or all or part of the assets of the employer’s business are sold, assigned or otherwise disposed of and the person who acquires the business or assets does not provide a pension plan for the members of the employer’s pension plan who become employees of the person.”

  5. Therefore, there are grounds for the Superintendent to order a partial wind up of the Plan in respect of the Affected Members.

  6. Where it has been clearly demonstrated that the entitlements of the members affected by a partial wind up under the PBA have otherwise been provided, the Superintendent may exercise his discretion not to order a wind up in part.

  7. Section 70(6) provides that on the partial wind up of a pension plan, the affected members shall have rights and benefits that are not less than the right and benefits they would have on a full wind up of the pension plan on the effective date of the partial wind up.

  8. The Plan was in a substantial surplus position as of the date of the sale.

  9. In addition, the PBA provides enhanced benefit entitlements to members affected by a partial wind up, including grow-in benefits under section 74. Although, the administrator has advised the Superintendent that all such benefits have otherwise been paid, the Superintendent has insufficient information available to him at this time to confirm this fact.

  10. Therefore, there is good reason for the Superintendent to exercise his discretion to order a partial wind up of the Plan because the Affected Members have a right to surplus distribution and the Superintendent is unable to verify if other entitlements under the PBA available on wind up were paid.

  11. Such further and other reasons as may come to my attention.

YOU ARE ENTITLED TO A HEARING by the Financial Services Tribunal (the “Tribunal”) pursuant to section 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
14th Floor
North York, Ontario
M2N 6L9

Attention: The Registrar


FOR FURTHER INFORMATION on a Form for the written notice, please see the Tribunal website at www.fstontario.ca or contact the Registrar of the Tribunal by phone at 416- 590-7294, toll free at 1-800-668-0128, ext. 7294, or by fax at 416-226-7750.

IF YOU FAIL TO REQUEST A HEARING WITHIN THIRTY (30) DAYS, I MAY CARRY OUT THE PROPOSAL AS DESCRIBED IN THIS NOTICE.

THE ADMINISTRATOR IS REQUIRED
pursuant to section 89(5) of the PBA to transmit a copy of this Notice of Proposal to the following persons: all members and former members of the Plan who were employed by Unilever Canada Inc. and who ceased to be employed by Unilever Canada Inc at as a result of the sale of HPC to the Purchaser.

DATED at Toronto, Ontario, this 4th day of January, 2007.



K. David Gordon
Deputy Superintendent, Pensions

Copy: H. Caley - CaleyWray
R. Downing - Teamsters Local Union 132

*NOTE - Pursuant to section 112 of the PBA any Notice, Order or other document is sufficiently given, served or delivered if delivered personally or sent by regular mail and any document sent by regular mail shall be deemed to be given, served or delivered on the seventh day after the date of mailing.

 
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