We are pleased to announce that we have entered into a Memorandum of Understanding (the “MOU”) with Canada Life which establishes an agreed upon framework under which a final settlement agreement (the “Settlement Agreement”) can be completed in respect of the current outstanding class action litigation and issues arising from the partial wind-up of the Canada Life Canadian Employees Pension Plan (the “Plan” or “Pension Plan”). Achieving a final settlement is subject to obtaining significant levels of member consent from both the partial wind-up members, and the other inactive remaining Plan members as of the date of the commencement of the litigation on April 12, 2005, as well as from active Plan members at the end of June 2005. It is also subject to court approval and approval of pension regulators, including the Financial Services Commission of Ontario (“FSCO”).

Our lawyers have been through this process many times and tell us that these settlements can sometimes take a number of years to complete. However, by signing the MOU, the parties have committed to a course of action that we are confident will lead to a cooperative settlement and your committee will work diligently to achieve a successful and timely result on behalf of all members.

Please note that under any final settlement partial wind up surplus distributions may be provided from the Plan. All Plan benefits will be fully protected as required by law.

The proposed settlement in the MOU would resolve the surplus claims of members affected by the partial wind-up that occurred between July 10, 2003 and June 30, 2005, and the claims of the remaining members with respect to payment of expenses out of the Pension Plan by Canada Life. The proposed MOU settlement is the result of negotiations between the parties over the last 12 months.

The details of the Settlement Agreement, once completed, will be released to all members once direction is obtained from the Judge of the Ontario Superior Court who is supervising the proceeding. It is anticipated that there will be mailings to affected individuals and information meetings across Canada to explain the Settlement Agreement and to seek appropriate member consents in accordance with the MOU requirements. At that time, members will receive an estimate of their eligible share of any settlement before being asked to provide their consents.

The estimated value of the net partial wind-up surplus available for distribution as at January 1, 2006 (based on the most recent actuarial valuation filed for the Plan with FSCO), is approximately $100 million. The highlights of the proposed MOU settlement involve the sharing of that surplus between eligible Plan members and Canada Life. Expenses and legal fees of the parties, including the legal fees of class counsel, will be paid “off the top” of the partial wind up surplus in accordance with the MOU, however, all legal fees and expenses must first be approved by the Court. Upon receipt of all required member, court and regulatory approvals, and compliance with the terms of the MOU, net partial wind up surplus available for distribution at that time (“Distributable Partial Wind Up Surplus”, which could be higher or lower than $100 million) will be shared so that 30.34% will be distributed to Canada Life and 69.66% to the eligible member group. The eligible member group 69.66% share of Distributable Partial Wind Up Surplus will be divided so that roughly 57.22% of the Distributable Partial Wind Up Surplus is allocated and paid to eligible partial wind-up members and 12.44% is allocated and paid to the eligible inactive remaining Plan members. Please note that the January 1, 2006 Distributable Partial Wind Up Surplus estimate is subject to change and will fluctuate until the actual distribution date due to a number of factors.

The remaining eligible active members who are/were employed by Canada Life as of the end of the partial wind up period on June 30, 2005 or subsequently joined the Plan will receive a 2 year contribution holiday or equivalent payment, payable out of the remaining Pension Plan surplus not affected by the partial wind-up, as well as other protections. The value of this contribution holiday will vary from member to member according to their individual circumstances.

As part of a final settlement, Canada Life is to receive a Court Order confirming, among other things, that it may continue to use surplus for Plan funding purposes and pay the expenses of administering the Pension Plan and fund out of the Plan surplus.

Further details will be released once Settlement Agreement documents are finalized and court approval for a class mailing is obtained.

The CLPENS executive fully supports achieving a final settlement based on the MOU that will make available significant financial benefits and protections to eligible Pension Plan members and former members.

We thank you for your patience to date and trust that we can rely on your cooperation while awaiting the release of further details.

All questions should be directed to class counsel at canadalifeclass@kmlaw.ca or canadalifeclass@harrisonpensa.com. The court process limits the ability for Canada Life to communicate with the potential class members.

Nov. 30, 2007

Mediation April 24-25, 2007

On Tuesday, April 24, 2007, the plaintiffs, Alexander Harvey, David Kidd and JP Marentette, along with Wilbert Antler representing CLPENS, and their counsel from Koskie-Minsky LLP and Harrison-Pensa LLP, attended a full day mediation conference in Toronto with representatives of Canada Life and their counsel from Blake, Cassels & Graydon LLP, and Osler, Hoskin & Harcourt LLP with the Honourable Regional Senior Justice Winkler acting as mediator.

Significant progress was made through the facilitated resolution discussions, and through further discussions on Wednesday, April 25, 2007, but we are not yet able to advise that any settlement resolution has been reached. All parties are still acting under the terms of a Communications and Confidentiality Agreement and, accordingly, we are unable to provide any further details at this time.

Discussions are continuing, and any material developments will be reported to you as soon as possible.

May 11, 2007

Decision in Potter et al. v. Bank of Canada

On March 30, 2007 the Ontario Court of Appeal released its decision in Potter et al. v. Bank of Canada. The plaintiffs in Potter ’ asked the court to order an accounting and direct distribution of monies to class members of the funds that were alleged to have been improperly paid out of the Bank of Canada pension fund and in the alternative asked the court to order restitution to the pension fund. The defendant Bank brought a motion to strike certain portions of the statement of claim relating to the remedy of “direct payments” to class members.

The Potter case, which concerns the alleged unlawful payment of pension plan expenses from the pension fund, is relevant to the Canada Life litigation where the plaintiffs have requested similar orders.

The Court of Appeal upheld the lower court decision striking the plaintiffs claim for direct payments, reasoning that the appropriate remedy to achieve fairness and justice was restitution to the pension fund. In Potter, the Court of Appeal held that the direct payment remedy requested by the plaintiffs would not be fair or just because, among other reasons, (1) it would give pension plan members more than they are entitled to receive from the plan, and (2) it prefers the interests of existing beneficiaries and ignores the interests of contingent beneficiaries.

The import of this decision is that it narrows the circumstances in which a Court may order an account and distribution to pension plan members for a breach of trust claim.

This means that there are very few, if any, situations where a Court would order a payout of expense money directly to the class members. In most cases, the remedy, if any, would be to require the Company to return all or part of the monies to the pension fund.

May 11, 2007

Mediation Adjourned to April 24-25, 2007

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Counsel for all the parties attended a telephone case conference with Justice Hoy on February 22, 2007 to report on the status of settlement negotiations. Counsel for the plaintiffs reported that a counter-proposal to settle the litigation was delivered to Canada Life on December 21, 2006. Canada Life advised that it intended to deliver a further proposal by March 16, 2007. All counsel agreed to attend at the mediation previously ordered by Justice Hoy.

Canada Life delivered its second proposal on March 16, 2006. At the request of Canada Life, the mediation was adjourned from March 26-27 to April 24-25, 2007, to give the parties additional time to consider their positions in light of the March 16 offer.

Counsel for the parties will be attending a telephone case conference with Justice Hoy on April 16, 2007.

April, 2007

Certification Hearing - November 14, 2006

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The plaintiffs’ motion for certification as a class proceeding, as well as Canada Life’s motion to strike certain portions of the amended statement of claim, were scheduled for hearing in the Superior Court of Justice on November 14, 2006.

With the attendance of all parties and at the request of Madam Justice Hoy, both motions were adjourned pending the Ontario Court of Appeal’s decision in Potter v. The Bank of Canada, and pending settlement negotiations among the parties.

Canada Life delivered a confidential proposal to resolve the litigation on November 9, 2006. The plaintiffs and the CLPENS Executive require time to examine and analyze the proposal and prepare a counter-proposal. Justice Hoy scheduled a settlement conference with Regional Senior Justice Warren Winkler in late March, 2007. In the interim, the parties have agreed to engage in resolution discussions.

CLPENS believes that this course of action will advance meaningful discussions between the parties. Justice Hoy’s endorsement reads as follows:

Mr. Zigler, Ms. Godkewitsch, Mr. Foreman for the Plaintiffs
Mr. Field and Ms. Brown for the Trustees
Mr. Galway and Ms. Thornton for Canada Life

November 14, 2006

Motion adjourned to a date to be scheduled at a case conference. Next case conference scheduled for Thursday, February 22, 2007, 10:00 a.m. Adjournment pending Court of Appeal's decision in Potter v. Bank of Canada. Plaintiffs to respond to Defendants' settlement offer of Nov. 9, 2006 by December 31, 2006. Parties to thereafter conduct settlement discussions, and be prepared to report as to the status (but not substance) of same at the Feb. 22, 2007 case conference. Also at the Feb. 22, 2007 case conference, the parties shall report on the status of the appeal in Potter v. Bank of Canada and provide submissions regarding the settlement conference process. If appropriate, a new date for the R. 21 and certification motions will be fixed at the Feb. 22, 2007 case conference. I will speak to RSJ Winkler to confirm his availability to conduct a 2-day settlement conference the week of March 26, 2007, or if not available then, when he is next available. RSJ Winkler's secretary or my secretary will confirm the date.

Adjourned to a date to be fixed at a case conference. See endorsement on Motion Record re: certification.

Alexandra Hoy

November 16, 2006

Proposal delayed again

Once again, Canada Life has failed to deliver a proposal to end the current dispute by their committed date of August 11th. On August 9^th, our counsel received a letter from Canada Life counsel, stating that:

this process has taken more time than anticipated, but Canada Life continues to work diligently to provide you with a proposal to resolve the litigation before the November 15^th certification hearing.

It is our view that the continual delays in delivering a proposal for a negotiated settlement indicate that the company may have little interest in bringing this matter to a timely conclusion. Whether the delays are part of a legal strategy, or whether they are due to the company’s indifference towards the members of the pension plan (in particular, those in the partial windup group) the plaintiffs and the class members are now faced with the need to resume litigation.

While the plaintiffs and the CLPENS Executive remain open to negotiation should an offer be presented in sufficient time for review, we are continuing to prepare for the November 15/16^th* certification hearing.

August 22, 2006

*please note the dates have now been changed to November 14/15th.

November 5, 2006

Notice

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The Certification Motion in the class action that has been brought by various CLPENS Members with respect to the surplus in the Canada Life Pension Plan has been adjourned to November 15 and 16, 2006 so that confidential settlement discussions can take place. An Agreement has now been entered into between Canada Life, the three Plaintiffs, the Members of the CLPENS Executive and the Advisors to the Plaintiffs which will ensure that there can be exchanges of information and data as well as confidential discussions that will help lead to a settlement. Our members have our commitment to try and obtain a fair and equitable settlement for all concerned and we will be working diligently over the next several months to achieve this. It is our objective to report back to our Members before our annual meeting in October 2006. While details of the negotiations must remain confidential we will do our best to inform you of any results as soon as possible.

In the event that the CLPENS Executive and the Plaintiffs agree to a proposed settlement with the Canada Life which they believe is in the best interests of all affected pension plan members, the proposed settlement will be brought forward and presented to the pension plan members.

CLPENS and the Plaintiffs cannot enter into any proposed settlement without Court approval, along with notice to all members, and any surplus sharing agreement with an employer requires approval of at least two thirds of the affected members under the Pension Benefits Act.

June 21, 2006

Proposal Delayed until August 11, 2006

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On June 12, 2006 a meeting was held between our counsel and the Canada Life counsel. The Canada Life counsel stated that while considerable time and effort have been spent to date reviewing the various aspects of the proposal, given the complexity of this matter, additional time beyond what was originally anticipated is needed to complete this review. The Canada Life lawyers advised that Canada Life expects to be in a position to provide a proposal to resolve the litigation by Friday, August 11, 2006.

This additional delay was discussed at the CLPENS Executive Committee meeting on June 13, 2006. The Committee agreed to accept this additional delay.

July 5, 2006

Proposal Delayed

Canada Life had originally committed to provide a draft memorandum of understanding to settle the class proceeding by May 31, 2006. On May 29, counsel for Canada Life advised that the settlement proposal is currently being reviewed by senior management and that such review will be completed within 2 weeks.

June 1, 2006

Adjournment of Certification Motion

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The parties attended before Madam Justice Ellen Macdonald on February 21, 2006 for the plaintiffs' motion to certify the action as a class proceeding, as well a motion by the defendant to strike certain portions of the statement of claim. On consent of the parties, the Court adjourned the motions to June 15, 2006, to provide time for the parties to explore a resolution to the litigation.

Canada Life has undertaken to provide our counsel with a comprehensive proposal to resolve the current dispute on or before May 31, 2006. Any discussions that take place between the parties will be strictly confidential. It is expected that an update will be available to all members on or after June 15, 2006.

To learn more about the legal proceedings, please visit the websites of our counsel by clicking on the links below, where you may access a summary of the claim and the court-filed statement of claim.

Koskie-Minsky LLP

Harrison Pensa LLP

March 3, 2006

Page Last Revised

19 Nov 2008

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