Unilever Canada Pension Plan - November 9, 2006

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 of the Superintendent of Financial Services to Make an Order that the pension benefit for Mr. Douglas Wills be recalculated under the terms of the Unilever Canada Pension Plan, Registration Number 0348367, pursuant to section 87 of the Act.


TO:

Unilever Canada Inc.
160 Bloor Street East
Suite 1500
Toronto, Ontario
M4W 3R2

Attention: Michele Partridge
Manager, Pension & Benefits

Employer and Administrator

NOTICE OF PROPOSAL

I PROPOSE TO MAKE AN ORDER that the pension benefit for Mr. Douglas Wills (“Mr. Wills”) be recalculated under the terms of the Unilever Canada Pension Plan, Registration Number 0348367 (the “Plan”), pursuant to section 87 of the Act.

REASONS:

  1. Unilever Canada Inc. (“Unilever”) is the Employer and Administrator of the Plan.

  2. The Plan is a defined benefit single-employer pension plan that was established effective January 1, 1936.

  3. Mr. Wills was hired by Unilever on December 5, 1966, entered the Plan as a member on January 1, 1968, and became fully vested on January 1, 1970. Mr. Wills’ normal retirement date is March 17, 2011.

  4. The Plan is divided into contributory and non-contributory components. As at
    December 31, 1989, Mr. Wills exercised an option to switch from the contributory to the non-contributory component of the Plan. Pursuant to the terms of the Plan, Mr. Wills’ pre-1991 contributory service is frozen.

  5. The current Plan text is the text as at January 1, 2000. This text provides that a member is entitled to a pension for pre-1991 contributory service based on both the pre-1991 frozen amount and the total contributory service. Section 6.01(b) of the current Plan text states:

    6.01 Normal Retirement Pension

    (b) Pension in Respect of Contributory Service

    Each Member who retires on his Normal Retirement Date pursuant to Section 5.01 shall receive an annual retirement pension in respect of his Contributory Service, commencing on his Normal Retirement Date and payable in equal monthly instalments, equal to the sum of (i) and (ii) below:

    (i) an amount equal to 1.3% of the Member’s Highest Average
    Earnings up to the Member’s Average YMPE, plus 1.8% of
    the Member’s Highest Average Earnings above the Member’s
    Average YMPE, multiplied by the Member’s Contributory
    Service on and after January 1, 1991.

    - plus -

    (i) an amount equal to 1.3% of the Member’s Highest Average
    Earnings (excluding the short term bonus in Section 2.32(b))
    up to the Member’s Average YMPE, plus 1.8% of the Member’s
    Highest Average Earnings (excluding the short term bonus in
    Section 2.32(b)) above the Member’s Average YMPE,
    multiplied by the Member’s Contributory Service prior to
    January 1, 1991,

    - plus -

    (ii) the amount, if any, set out in Appendix H representing any
    frozen contributory pension to the Member’s credit prior to
    January 1, 1991.

  6. Mr. Wills received an annual pension statement as at December 31, 2001. The pension statement includes the pre-1991 frozen contributory service, but does not include any amount with respect to the calculation based on his Highest Average Earnings and Average YMPE as required by the second subclause (i) found in section 6.01(b) of the current Plan text.

  7. Unilever claims that the second subclause (i) found in section 6.01(b) of the current Plan text is a drafting error, but has not provided adequate reasons or evidence to demonstrate that the doctrine of rectification should apply.

  8. Section 87(1)(a) of the Act states that the Superintendent of Financial Services (the “Superintendent”) may make an order if the Superintendent is of the opinion, upon reasonable and probable grounds, that the pension plan is not being administered in accordance with its terms.

  9. 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 Act. 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- 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 CARRY OUT THE PROPOSAL AS DESCRIBED IN THIS NOTICE.

DATED at Toronto, Ontario, this 9 day of November, 2006.


K. David Gordon
Deputy Superintendent, Pensions

c.c. Mr. Douglas Wills
c/o Gardiner Roberts LLP
Suite 3100, Scotia Plaza
40 King Street West
Toronto, Ontario
M5H 3Y2

Attention: Warren S. Rapoport

*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.

 
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