Ivaco Inc. - March 2, 2007

IN THE MATTER of the Pension Benefits Act, R.S.O. 1990, c. P.8, as amended (the “Act”);

AND IN THE MATTER of an amended Proposal of the Superintendent of Financial Services to make an Order under section 83 and 89 of the Act, respecting the Pension Plan for the Salaried Employees of Ivaco Inc. and Participating Subsidiary Companies, (the “Plan”) Registration Number 0410357 (the “Plan”).

TO:                 

Andre Cromp
President of the Pension Committee
Ivaco Inc.
3400, boul. de Maisonneuve Ouest  770, rue
1, Place Alexis Nihon, bureau 1501
Montreal, Québec   H3Z 3B8 Sherbrooke Ouest
20e etage
Montreal, Quebec H3A 1G1               

Administrator

AND TO:        

Andre Cromp
Ivaco Inc.
3400, boul. de Maisonneuve Ouest
1, Place Alexis Nihon, bureau 1501
Montreal, Québec   H3Z 3B8
770, rue
Sherbrooke Ouest 
20e etage
Montreal, Quebec H3A 1G1               

Employer

AND TO:        

Jeff Kerbeler
Ernst & Young
Ernst & Young Tower
222 Bay Street, P.O. Box 251
Toronto, ON M5K 1J7

Court Appointed Monitor

 

ORDER DECLARATION

ON March 27, 2006, the Superintendent of Financial Services (the “Superintendent”) issued a Notice of Proposal (the “NOP”) proposing to make a declaration under section 83 of the Act that the Pension Benefits Guarantee Fund applies to the Plan.

ON May 2, 2006, a Request for Hearing before the Financial Services Tribunal was filed by Ivaco Inc. through its Monitor Ernst & Young Inc. in its Capacity as Monitor and Without Personal Liability to the Monitor (the “Monitor”).              

ON February 6, 2007, the Superintendent issued an amended NOP reflecting the correct Ontario deficit in the Plan at the wind up date and the correct addresses of the Administrator and Employer.

ON February 28, 2007, the Request for Hearing was withdrawn by the Monitor. No request requiring a hearing was delivered to the Financial Services Tribunal within the time prescribed by subsection 89(6) of the Act requesting a Notice of Proposal to make a Declaration that the Pension Benefits Guarantee Fund applies to the Plan.

 

I, THEREFORE, DECLARE pursuant to sections 83 and 89 of the Act  that the Pension Benefits Guarantee Fund (Guarantee Fund) applies to the Plan for the following reasons:

1. The Plan is registered under Quebec’s Supplemental Pension Plans Act, a designated province stipulated under section 1 of the Act;, and
   
   
2. The Plan provides defined benefits that are not exempt forom the application of the  Pension Benefits Guarantee Fund by the Act or the regulations made thereunder;, and    
   
   
3. The plan was wound up effective December 1, 2004;, and
   
   
4. There are reasonable and probable grounds that the funding requirements of the Act and  regulations cannot be satisfied.  The Ontario Wind Up Liability of the Plan, exceeds the Ontario assets of the Plan as of the wind up, resulting in a deficit (the “Ontario deficit”).  The administrator has estimated the Ontario deficit in the Plan at the wind up date to be $16,372,000.  Based on the latest actuarial certification, there is an estimated claim against the Pension Benefits Guarantee Fund of $10,002,000.  If funds become available from the estate of the employer, the administrator will be required to make an appropriate refund of any allocation amount received by the Plan from the Pension Benefits Guarantee Fund

DATED at Toronto, Ontario, this 2nd day of March, 2007               

 

___________________________
K. David Gordon
Deputy Superintendent, Pensions