Tag: Act s. 70
As a part of the Nortel Networks Corporation (Nortel) bankruptcy, the Superintendent ordered the wind up of two pension plans (the Plans) as of October 1, 2010. Shortly thereafter, the Superintendent approved an interim allocation of the Pension Benefits Guarantee Fund (PBGF). Per that approval, any PBGF money not required to provide benefits in accordance with s. 34 of the Regulation (e.g., indexation benefits) would be returned to the PBGF . . .
Fredericton Police Association v. New Brunswick (Superintendent of Pensions), 2019 NBFCST 4, 5, 6 – Jurisdiction of the Tribunal & Other Procedural Issues
The New Brunswick Financial and Consumer Services Tribunal Decision rendered three procedural decisions related to the ongoing pension dispute between the Fredericton Police and Fire Fighters’ Associations and the City of Fredericton . . .
The Ontario Superintendent of Financial Services issued a Notice of Intended Decision (NOID) with respect to the wind up of two Nortel Networks Corporation (Nortel) pension plans (the Plans):
- to approve certain addenda to the Plans' wind up reports;
- to refuse to order the administrator of the Plans to prepare new addenda using assumptions/methods that determine member entitlements and Pension Benefits Guarantee Fund (PBGF) refunds in a manner which does not take into account certain amounts paid into the pension funds from the Nortel estate; and
- to refuse to order the administrator to refrain from distributing funds to the PBGF in accordance with the addenda.
Fredericton Police Association v. Superintendent of Pensions, 2016 NB FCST 2 – Tribunal Takes Issue with Superintendent Process and Orders Change to Asset Transfer Valuation Method
This is the latest decision related to the ongoing dispute between the Fredericton Police and Fire Fighters' Associations and the City of Fredericton with respect to the City's defined benefit pension plan. First, some background:
- The City's original DB plan had been funded on a going concern basis only, as it was exempt from solvency funding requirements.
- In 2011, the City attempted to address the plan's funding deficit by: increasing pension contributions, reducing indexing and changing the definition of “pensionable earnings”.
- The Police and Fire Fighters launched a number of proceedings before the New Brunswick Labour & Employment Board. First, in response to the change to "pensionable earnings" and then in response to the City of Fredericton's 2013 decision to convert the plan from a DB to a shared risk plan.
- The Labour Board issued an order essentially prohibiting the City from transferring the Police and Fire Fighters into the shared-risk plan.
- This resulted in the splitting of the original plan into two plans: a new DB plan for Police and Fire Fighters (the Police and Fire Plan) and the conversion of the original plan into a shared-risk plan for the remainder of the City employees.
- The assets and liabilities were split between the two plans in accordance with an actuarial report that was subsequently approved by the New Brunswick Superintendent of Pensions.