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 87 of the PBA relating to the Unilever Canada Pension Plan, Registration Number 0348367
Unilever Canada Inc.
160 Bloor St. East, Suite 1500
Attention: John D. Coyne
Vice President, General Counsel and Corporate Secretary
Employer and Administrator
NOTICE OF PROPOSAL
I PROPOSE TO MAKE AN ORDER in respect of the Unilever Canada Pension Plan, Registration Number 0348367 (the “Plan”) under section 87 of the PBA, requiring the administrator of the Plan to file the report on the partial wind-up of the Plan detailed in the Reasons below, within thirty (30) days of the issuance of this Notice of Proposal.
- The Home & Personal Care facility at 21 Don Valley Parkway, Toronto (the “HPC”) was sold by Unilever Canada Inc. (“Unilever”) to Korex Don Valley ULC, effective August 18, 2002.
- As a result of the sale, 272 Plan members working at the HPC ceased to be employees of Unilever at the end of the day on August 17, 2002 and became employees of Korex Don Valley ULC thereafter. No pension plan was provided by the purchaser, Korex Don Valley ULC.
- A Notice of Proposal of the Partial Wind-Up of the Plan was distributed by Unilever on or before March 9, 2007, in accordance with section 68 of the PBA, to those members of the lan who were employed by Unilever on August 17, 2002 at HPC and who ceased to be employed by Unilever at the end of the day on August 17, 2002 as a result of the sale (the “Affected Members”), to any other person entitled to payments from the Plan in respect of the Affected Members, to Teamsters Local Union 132 and to the Superintendent of Financial Services.
- The Notice of Proposal of the Partial Wind-Up of the Plan provided that the wind-up would be declared effective August 17, 2002 and that Unilever would file a partial wind-up report with the Superintendent of Financial Services of Ontario.
- Section 70 of the PBA requires the administrator of a plan that is to be wound up in hole or in part to file a wind-up report that sets out the assets and liabilities of the pension plan; the benefits to be provided under the pension plan to members, former members and other persons; the methods of allocating and distributing the assets of the pension plan and determining the priorities for payment of benefits; and such other information as is prescribed.
- Section 29(3) of R.R.O. 1990, Reg. 909 (the “Regulation”), requires the administrator of the plan to file the wind-up report required under section 70 of the PBA within six months following the effective date of the wind-up of the plan.
- On July 25, 2007, the Financial Services Commission of Ontario (“FSCO”) wrote to Unilever noting that the report on the partial wind-up of the Plan had not been filed within he six month period required under the PBA and the Regulation and requiring that the partial wind-up report be submitted no later than September 25, 2007.
- On September 25, 2007, Unilever wrote to FSCO requesting a filing extension until January 31, 2008. On October 4, 2007, FSCO wrote to Unilever confirm that the extension was granted.
- As of February 12, 2008, no report on the partial wind up had been filed with the Superintendent of Financial Services.
- Section 87 of the PBA grants the Superintendent of Financial Services the authority to order an administrator to take any action in respect of a pension plan or pension fund in circumstances where the administrator of the pension plan is contravening a requirement f the PBA or the Regulation and to specify the time within which the administrator must comply with the order.
- 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 21st day of February, 2008.
K. David Gordon
Deputy Superintendent, Pensions
CaleyWray Labour Lawyers
1205-111 Richmond Street West
Attention: Harold F. Caley
* 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.