CANADA LIFE CANADIAN PENSION PLAN MEMBERS’ RIGHTS GROUP

 

                                 Newsletter 25 - November 20, 2005

 

 

LEGAL WEBSITES

 

Our case has now been added to the Client Links section of the Koskie-Minsky LLP website and the Class Action Matters section of the Harrison Pensa LLP website.  You may follow the legal developments via the links

 

http://www.koskieminsky.com/client_links/CanadaLifeAssuranceCompany/home.aspx and

 

http://www.harrisonpensa.com/class-action-matters/default.asp?id=2.

 

 

ANNUAL GENERAL MEETING

 

The 2005 Annual General Meeting was held October 19th from 7:00 PM to 8:30 PM.

 

It was well attended by approximately 200 members who were on hand to hear presentations relating to the various issues facing our group. In addition, the slate of candidates was put forward, and was unanimously approved by the voting members.

 

The minutes of the 2005 AGM are posted on the website for your review and comments. 

 

LEGAL UPDATE

 

Mr. Mark Zigler of Koskie Minsky LLP addressed the AGM.  He advised that the CLPENS legal team had a case conference with the judge assigned to our case in September; that the Company must file a partial plan windup report by December 31,2005; and that the certification hearing for the class action lawsuit is now scheduled to commence on February 20, 2006.

 

Mr. Zigler listed the 3 main issues in this case:

 

1.      Who owns the plan surplus?

2.      Is the Company in violation in paying plan expenses with fund assets? (See next section for an update on this issue).

3.      How will surplus assets be distributed as a result of the partial plan windup?

 

Mr. Zigler advised that the CLPENS legal team would keep members up to date via the Koskie Minsky website; written communication; and a toll free telephone number. For more detail on these issues, go to the website under AGM Minutes.

 

EXPENSE ISSUE SUCCESS

 

Based on information provided to the Financial Services Commission of Ontario (FSCO) by CLPENS, FSCO wrote directly to the Company requesting documentation to substantiate Canada Life’s position that the payment of costs and expenses could be taken directly from the pension fund. The Company’s initial position was that, due to the impending litigation, no action was necessary until the courts decided the case.

 

FSCO disagreed with that position.  As outlined during his presentation at the AGM, Mr. Zigler noted that the Financial Services Commission of Ontario had become involved and required the Company to suspend using plan assets to pay expenses pending a decision by the Ontario Superior Court of Justice with respect to this issue.   This is an important victory for CLPENS.

 

 

THE 2005-2006 EXECUTIVE COMMITTEE

 

At the AGM both David Kidd and Fred Taggart were elected as new executive members. Brian Lynch and Jim Martin were re-elected as executive members for two-year terms. The other members have one year remaining on their two-year term. The 2005-2006 Executive Committee is:

 

Wib Antler                       Brian Lynch

Ed Barrett                         Jim Martin

Phil Davy                         Gary Nummelin

Alex Harvey                     Fred Taggart

David Kidd

 

 

SUPPLEMENTARY EMPLOYEE PENSION PLAN (SERP) UPDATE

 

The last newsletter dealt with a letter sent to ex-Canada Life employees advising that Great- West is terminating the supplemental pension plan for those employees not yet retired and who continue to be members of the basic pension plan.

 

As background, the Supplementary Employee Retirement Plan (SERP) provides pension coverage in excess of that allowed under the Income Tax Act.

 

Fred Taggart has agreed to Chair a sub-committee to look into the move by Great- West to terminate the SERP. The three main considerations are:

1.      Is the Company’s action legal?

2.      Is the Company’s settlement fair?

3.      If the action is illegal and/ or unfair, what are the alternatives?

 

One communiqué has been forwarded to those members who requested information on this subject. Further communiqués will be sent directly to those who replied to the initial e-mail on the SERP and will be posted on the website for others to view.

 

 

President:                               Wib Antler

Vice President:                       Ed Barrett

Secretary and Treasurer:      Gary Nummelin

Committee Members:           Phil Davy, Alex Harvey, David Kidd, Jim Martin, Brian Lynch, Fred Taggart

 

 

 

NOTE: Previous newsletters are available on our website.  The Group’s website is www.trigger.net/~clpens/ .  If you have information or opinions to share with us, send your submission to clpens@trigger.net.