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 33 of the PBA relating to The Pension Plan for Employees of McLean & Dickey Ltd. Manulife Policy No GN 81695009, Registration Number 0963462
McLean & Dickie Ltd.
390 Laclie Street
P.O. Box 308
Attention: Dianne Evans
Manager, Life Department
Employer & Administrator
J. Yvonne Brock
7 Catherine Street
Former Employee of McLean & Dickie Ltd.
NOTICE OF PROPOSAL
I PROPOSE TO MAKE AN ORDER in respect of The Pension Plan for Employees of McLean & Dickey Ltd., Manulife Policy No GN 81695009, Registration Number 0963462, (the “Plan”) under section 33 of the PBA, that J. Yvonne Brock (“Ms. Brock”) be accepted as a member of the Plan for the period from December 1997 to December 2003.
- McLean & Dickie Ltd. (“McLean”) is the employer and administrator of the Plan, which is a defined contribution pension plan established as at January 1, 1989.
- Ms. Brock was employed by and received remuneration from McLean as a Financial Advisor in McLean’s Life Department from December 1995 to December 2003.
- Ms. Brock was not enrolled as a member of the Plan while she was employed with McLean.
- The Plan defines “employee” in section 1 as meaning a person who belongs to a class of employees in Section A.3 of the Application (defined as the application for the Plan, signed by McLean, and attached to or forming part of the Plan).
- Section A.3 of the Application states that all employees with 24 months of completed service are eligible to become members of the Plan.
- The Plan defines “member” in section 1 as meaning an employee who has become a member of the Plan in accordance with section 3 of the Plan.
- Section 3 of the Plan states in part:
Any Employee is eligible to become an Active Member of the Plan on the
first day of any calendar month, provided the Employee has then fulfilled
the requirements outlined in Section A.3 of the Application. . .
A full-time Employee may elect to become a Member at any time upon or
after completing 2 years of Continuous Service.
- McLean has refused to admit Ms. Brock into the Plan, taking the position that she is not part of the class of employees for whom the Plan was established because she was employed in the Life Department of McLean’s business. McLean also takes the position that Ms. Brock was self-employed.
- Section 31 of the PBA states that every employee of a class of employees for whom a pension plan is established is eligible to be a member of the pension plan, and that an employee in a class of employees for whom a pension plan is maintained is entitled to become a member of the pension plan upon application at any time after completing twenty-four months of continuous employment.
- Section 33 of the PBA states that where there is a dispute as to whether or not an employee is a member of a class of employees for whom a pension plan is established or maintained, the Superintendent by order may require the administrator to accept the employee as a member of the Plan if the Superintendent is of the opinion that, on the basis of the nature of the employment or of the terms of employment of the employee, the employee is a member of the class.
- Section 1 of the PBA defines the term “employer” as the person or persons from whom or the organization from which the member or former member receives or received remuneration to which the pension plan is related.
- There is no evidence that the Plan was established for a class of employees that excluded employees who were employed in McLean’s Life Department. Rather, the clear language of the Plan demonstrates that the Plan was established for all employees with twenty-four months of continuous service.
- Ms. Brock was an employee of McLean within the meaning of the PBA who had at least twenty-four months of continuous service. Therefore, she is entitled to be admitted as a member of the Plan commencing in December 1997.
- 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.
DATED at Toronto, Ontario, this 11th day of April, 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.