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 Approve a Partial Wind Up Report under section 70(2) of the PBA relating to the Pension Plan for Executives of Shoppers Drug Mart, Registration Number 1066083.
Shoppers Drug Mart Inc.
243 Consumers Road
North York, Ontario
Attention: John Caplice
SVP Treasurer & Investor Relations
Employer and Administrator of the Plan
NOTICE OF PROPOSAL
I PROPOSE TO APPROVE THE PARTIAL WIND UP REPORT dated August 2007, filed in respect of the Pension Plan for Executives of Shoppers Drug Mart, Registration Number 1066083, (the “Plan”) under section 70(2) of the PBA, subject to the limitations noted below.
- Shoppers Drug Mart Inc. (“Shoppers”) is the employer and administrator of the Plan.
- On August 31, 2007, Shoppers filed with the Superintendent of Financial Services the Partial Wind Up Valuation as at April 22, 2005, dated August 2007 (the “Report”) for the Plan in relation to members of the Plan who ceased to be employed by Shoppers between January 1, 2000 and April 25, 2003 as a result of the reorganization of Shoppers’ business. The Report does not cover all members who ceased to be employed during this period, but only members who are deemed to have ceased to be employed as a result of the reorganization.
- The Report identifies a deficit attributable to the partial wind up. As required by section 32 of Regulation 909, R.R.O. 1990, as amended (the “Regulation”), annual actuarial reports must be filed until a report is filed certifying that there are no further amounts to be funded under section 75 of the PBA.
- Until such a report is filed certifying that there are no further amounts to be funded under section 75 of the PBA, section 29(8) of the Regulation states that no assets may be used to purchase a life annuity, and the commuted values that may be paid out are limited to the amount of employee contributions, if any.
- Subject to the limitations in paragraphs 3 and 4 above, I propose to approve the Report.
- 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) to transmit a copy of this Notice of Proposal to the following persons: all members and former members of the Plan who ceased to be employed by Shoppers for any reason between January 1, 2000 and April 25, 2003. For clarification, this is not limited to the members and former members who are covered by the Report.
DATED at Toronto, Ontario, this 22nd day of August, 2008
K. David Gordon
Deputy Superintendent, Pensions
* 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.