IN THE MATTER OF the Pension Benefits Act, R.S.O. 1990, c. P.8 as amended (the “PBA”);
AND IN THE MATTER OF the Spar Aerospace Limited Pension Plan for Employees Represented by CAW Local 112, Registration No. 0549501 and the Spar Aerospace Limited Pension Plan for Employees Represented by CAW Local 673, Registration No. 0549519.
L-3 Communications Canada Inc.
649 North Service Road W.
Burlington, ON L7P 5B9
Attention: Edith Fraser
Director, Pensions – Canada
Employer and Administrator
THE CAW-CANADA AND ITS LOCALS 112 AND 673 (the “Union”) requested that the Superintendent of Financial Services (the “Superintendent”) declare partial wind ups of the Spar Aerospace Limited Pension Plan for Employees Represented by CAW Local 112, Registration No. 0549501 and the Spar Aerospace Limited Pension Plan for Employees Represented by CAW Local 673, Registration No. 0549519 (the “Plans”).
THE SUPERINTENDENT declined to order such partial wind ups.
A REQUEST FOR HEARING dated May 16, 2006 was filed by the Union with the Financial Services Tribunal (the “Tribunal”) in connection with this matter and hearings concerning certain preliminary jurisdictional objections were held on December 11, 2006, May 24 and May 30, 2007.
THE TRIBUNAL, in Reasons for Decision dated January 19, 2007 and Reasons for Decision dated June 12, 2007 (the “June Decision”), dismissed the preliminary jurisdictional objections and held that it had the jurisdiction to consider the wind up request of their merits.
AN APPEAL to the Divisional Court was taken from the June Decision under section 91 of the PBA by Spar Aerospace Limited (“Spar”).
THE PARTIES did not object to the Tribunal proceeding with the hearing on the merits pending the Appeal.
THE PARTIES entered into Minutes of Settlement under which the parties consented to an Order of the Tribunal (the “Tribunal Order”) directing the Superintendent to issue an order requiring the partial wind ups of the Plans on the terms set out in paragraphs 2 and 3 of this Order.
THE TRIBUNAL granted the Tribunal Order on November 13, 2007 on the consent of the parties.
THE TRIBUNAL ORDER by its terms, was stayed pending resolution of the Appeal.
SPAR, pursuant to additional Minutes of Settlement, abandoned the Appeal on April 23, 2008 and the stay of the Tribunal Order was, therefore, lifted.
I, THEREFORE, ORDER THAT:
- That the Plans be partially wound up.
- The partial wind ups of the Plans shall cover all members of the Plans who ceased employment during the period between January 1, 2003 and June 30, 2007 (and for further clarification, this coverage shall include employees who retired during this period and / or were indefinitely laid off during this period).
- The effective date of the partial wind ups shall be June 30, 2007, but individual entitlements shall be determined as of the individual's termination date and the effective date will only be used to compute the overall positions of the Plans.
DATED at Toronto, Ontario, this 15th day of May, 2008.
K. David Gordon
Deputy Superintendent, Pensions
Borden Ladner Gervais LLP
Scotia Plaza, 40 King Street West
Toronto, ON M5H 3Y4
Markus F. Kremer
Tel: (416) 367-6658
Fax: (416) 361-2702
Counsel for Spar
CAW-Canada Legal Department
205 Placer Court
Toronto, ON M2H 3H9
Tel: (416) 495-3750
Fax: (416) 495-3786
Counsel for the Union