IN THE MATTER OF
the Pension Benefits Act, R.S.O.1990, c.P.8, as amended (the “Act”);
AND IN THE MATTER OF a Proposal to Make an Order under section 87 of the Act in relation to the Pension Plan for Employees of National Steel Car Limited, Registration
National Steel Car Limited
600 Kenilworth Avenue North
P.O. Box 2450, Stn Lcd 1
Linda A. Smith
Manager, Payroll & Benefits
Employer and Administrator
Mr. Taso Ristic
c/o C. Winterburn
Local Union 7135, United Steel Workers of America
350 Kenilworth Avenue N. First Floor
NOTICE OF PROPOSAL
I PROPOSE TO MAKE AN ORDER pursuant to section 87 of the Act
requiring National Steel Car Limited (“National Steel Car”) to credit Mr. Taso Ristic (“Mr. Ristic”), a former member of the Pension Plan for Employees of National Steel Car Limited, Registration Number 0215038 (the “Plan”), with service under the Plan for the period or periods of time during which Mr. Ristic was laid off from employment and receiving partial permanent disability benefits from the Workmen’s Compensation Board (the “WCB”).
- National Steel Car is the employer and administrator of the Plan.
- Mr. Ristic was employed by National Steel Car Limited and was a member of the Plan from June 24, 1964 to February 24, 1977.
- Mr. Ristic sustained a workplace injury and off work from December 21, 1971 to January 17, 1972, during which time he received total temporary disability benefits from the WCB.
- Mr. Ristic was again off work and received total temporary disability benefits from the WCB from February 14, 1972 to April 10, 1972.
- On April 11, 1972, Mr. Ristic returned to work and began receiving partial permanent disability benefits from the WCB.
- Mr. Ristic was again laid off from July 14, 1972 to November 6, 1973, during which time he continued to receive partial permanent disability benefits from the WCB.
- On February 24, 1975, Mr. Ristic was laid off for the last time. On February 24, 1977, his employment status was altered from laid off to quit pursuant to the collective agreement. Mr. Ristic continued to receive partial permanent disability benefits from the WCB throughout.
- The Plan provisions in effect while Mr. Ristic was employed by National Steel Car provided in Part II, paragraph 3:
The number of complete weeks for which an Employee receives
Workmen’s Compensation benefits shall be credited on the basis
of 40 hours for each week, provided that no Employee shall be
credited with service under this subsection after retirement.
- The Plan did not define the term “Workmen’s Compensation benefits”.
- The Workmen’s Compensation Act, R.S.O. 1970, c.505 (the “WCA”) provides for four types of workers’ compensation benefits: partial temporary disability benefits; total temporary disability benefits; partial permanent disability benefits; and total permanent disability benefits. The WCA refers to all of these benefits as “compensation”.
- The Plan provision cited in paragraph 8 above does not distinguish among the various types of workers’ compensation benefits. Absent such a distinction, and absent any definition of the term “Workmen’s Compensation benefits” in the Plan, that term must include all four types of workers’ compensation benefits provided by the WCA at the time of Mr. Ristic’s various layoffs from employment.
- National Steel Car has refused to credit Mr. Ristic with service under the Plan for the periods during which he was laid off and receiving partial temporary disability benefits from the WCB.
- The Act states in clause 87(2)(a), that the Superintendent of Financial Services (the “Superintendent”) may require an administrator to take any action if the Superintendent is of the opinion, upon reasonable and probable grounds, that the pension plan is not being administered in accordance with the pension plan.
- National Steel Car is not administering the Plan in accordance with its terms by refusing to credit Mr. Ristic with service under the Plan for the time or times during which Mr. Ristic was laid off from employment and receiving partial permanent disability benefits from the WCB.
- 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 subsection 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, contact the Registrar of the Tribunal by phone at (416) 226-7752, toll free at 1-800-668-0128, ext. 7752, or by fax at (416) 226-7750.
IF YOU FAIL TO REQUEST A HEARING WITHIN THIRTY (30) DAYS, I MAY MAKE THE ORDER PROPOSED IN THIS NOTICE OF PROPOSAL.
DATED at Toronto, Ontario, February 6th, 2006.
K. David Gordon
Deputy Superintendent, Pensions
cc Blake, Cassels & Graydon LLP
Barristers & Solicitors
Box 25, Commerce Court West
199 Bay Street
Attention: Jeffrey P. Sommers
*NOTE—PURSUANT to section 112 of the Act any notice, order or other document is sufficiently given, served, or delivered if delivered personally or sent by first class mail and any document sent by first class mail shall be deemed to be given, served, or delivered on the seventh day after mailing.