Retirement Plan for Salaried Employees of MIL Systems Engineering Inc. - March 22, 2008.

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 by the Superintendent of Financial Services to make an Order under section 78(1) of the PBA consenting to a payment out of the Retirement Plan for Salaried Employees of MIL Systems Engineering Inc.  (the Plan), Registration Number 684902.

TO:

Groupe Thibault Van Houtte & Associés Ltée
70, Rue Dalhousie, Bureau 100
Quebec, Quebec  G1K 4B2

Attention:   Patrice Van Houtte

Applicant and Trustee in Bankruptcy of MIL Systems Engineering Inc.
 


NOTICE OF PROPOSAL

I PROPOSE TO MAKE AN ORDER under section 78(1) of the PBA, consenting to the payment out of the Retirement Plan for Salaried Employees of MIL Systems Engineering Inc.  (the Plan), Registration Number 684902, to Groupe Thibault Van Houtte & Associés Ltée, in the amount of $522,750.50 as at November 2,  2001,  (representing 50% of the Wind Up Surplus in the Plan of $1,045,511 determined as at November 2, 2001),  plus 50% of the interest, earnings and experience gains (net of all investment and experience losses thereon) on the Wind Up Surplus from November 2, 2001to the date of distribution of the said payment, minus 50% of all reasonable costs and expenses incurred by the Plan Administrator in the administration and wind up of the Plan, and minus $62,500 representing 50% of a contingency reserve to cover any unforeseen liabilities, all of the above being in accordance with the terms of the Surplus Sharing Agreement issued pursuant to Minutes of Settlement dated January 12, 2007 entered into by the Member Committee comprised of members and former members of the Plan at wind up, and the trustee in bankruptcy of MIL Systems Engineering Inc.

 

I PROPOSE TO MAKE THE ORDER effective only after the Applicant satisfies me that all benefits, benefit enhancements (including benefits and benefit enhancements pursuant to the Surplus Sharing Agreement described in paragraph #5 below) and any other payments to which the members, former members, and any other persons entitled to such payments have been paid, purchased or otherwise provided for.

 

I PROPOSE TO MAKE THIS ORDER FOR THE FOLLOWING REASONS:

  1. MIL Systems Engineering Inc. is the employer as defined in the Plan.

  2. The Plan was wound up, effective November 2, 2001

  3. As at November 2, 2001 the surplus in the Plan was estimated to be at $1,045,511.

  4. The Plan provides for payment of surplus to the Employer on wind up of the Plan.

  5. The application discloses that by written agreement made by the Trustee in Bankruptcy and 86.4% of the active members and other members (as defined in the application), and 91.2% of the former members and other persons entitled to payments from the fund, the surplus in the Plan at the date of payment, after deduction of wind up expenses and a contingency reserve of $125,000, is to be distributed:

    a) 50% to the Employer; and

    b) 50% to the beneficiaries of the Plan as defined in the Surplus Distribution Agreement, less all expenses of the Member Committee inclusive of its legal counsel costs. 

  6. The Employer has applied, pursuant to section 78 of the PBA, and section 8(1)(b) of Regulation 909, R.R.O.1990 (Regulation), for consent of the Superintendent of Financial Services to the payment of 50% of the surplus to be distributed from the Plan (after adding 50% of investment earnings and deducting 50% of the expenses related to the wind up of the Plan.)

  7. The application appears to comply with sections 78 and 79(3)(a) & 79(3)(b) of the PBA and with sections 8(1)(b), 28(5), 28(5.1) and 28(6) of the Regulation.

  8. Such further and other reasons as 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
Toronto, 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.

 

DATED at Toronto, Ontario, this 22nd  day of March, 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. Describe the amount of the refund, its estimate as of {date}, and any adjustments to be made to it to the date of payment

 
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