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)(b) and to Make and Order under sections 55(2) and 87(2)(c) of the PBA relating to The Pension Plan for Employees of Wabi Iron & Steel Corp., Registration No. 1001916
Wabi Iron & Steel Corp.
P.O. Box 1510
330 Broadwood Avenue
New Liskeard, Ontario
Attention: Gary Godreau
Executive Vice President
Employer and Administrator of the Plan
NOTICE OF PROPOSAL
I PROPOSE TO MAKE AN ORDER that The Pension Plan for Employees of Wabi Iron & Steel Corp., Registration No. 1001916 (the “Plan”), be wound up as at November 1, 2007 under section 69(1)(b) of the PBA.
I ALSO PROPOSE TO MAKE AN ORDER under sections 55(2) and 87(2)(c) of the PBA that Wabi Iron & Steel Corp. (“Wabi”) remit all outstanding contributions to the Plan.
- Wabi is the employer and administrator of the Plan.
- The Plan is governed by the PBA and Regulation 909, R.R.O. 1990 made under the PBA as amended (the “Regulation”).
- The Plan was established effective March 11, 1993 as a defined benefit non-contributory pension plan with a fiscal year end of December 31st.
- Section 6.02 of the Plan states:
Each month or within 30 days thereafter the Company (defined in the Plan as Wabi) shall make such payments to the Funding Agency for the credit of the Pension Fund as are necessary, in the opinion of the Actuary, to provide the pension benefits accruing to the Members during such Plan Year and to amortize any initial unfunded liabilities or experience deficiencies in accordance with the Pension Benefits Act, after taking into account the assets of the Pension Fund, the earnings thereon, and all other relevant factors. Any surplus assets in the Pension Fund, as determined by the Actuary, may be applied to reduce any payments to the Pension Fund that the Company would otherwise be required to make.
In the event of termination of the Plan as provided pursuant to Section 15 hereof, the Company shall not be obligated to make any further contributions to the plan save and except those which it was required, by reference to the Pension Benefits Act, to make and has not made in respect of benefits accrued under the Plan prior to the date of such termination.
- It part of the Plan that was partially wound up relating to the Orillia location closure. As at December 31, 2006, the unremitted contributions with respect to the Plan were estimated to be approximately $600,000 by the Plan’s actuary. In addition, the Plan’s actuary estimates that as at May 1, 2006, there was a solvency deficiency of $444,419 in the Plan.
- The members of the Plan are represented by the United Steelworkers (the “Union”).
- Both the Company and the Union operate under a Collective Agreement dated April 27, 2007 and effective May 1, 2007 to April 30, 2010.
- Section 55(2) of the PBA states that an employer who is required to make contributions to a pension plan shall make the contributions in accordance with the prescribed requirements for funding and shall make the contributions in the prescribed manner and at the prescribed times to the pension fund.
- Section 4(4) of the Regulation states that employer contributions shall be made in monthly installments within 30 days after the month for which the contributions are payable.
- Section 87(2)(c) of the PBA states that the Superintendent may make an order if the Superintendent is of the opinion, upon reasonable and probable grounds, that the employer is contravening a requirement of the PBA or the Regulation.
- Section 69(1)(b) of the PBA states that the Superintendent of Financial Services may require the wind up of a pension plan if the employer fails to make contributions to the pension fund as required by the PBA or the Regulation.
- 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
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, which includes the written reasons, to: each member and former member of the Plan; each trade union that represents members of the Plan; and the dvisory committee of the Plan, if any.
DATED at Toronto, Ontario, this 27th day of June, 2008
K. David Gordon
Deputy Superintendent, Pensions
Canadian National Office
800-234 Eglinton Avenue East
Toronto, ON M4P 1K7
Attention: Catherine Braker, Counsel
* 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 registered 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.