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THE FINANCIAL SERVICES COMMISSION OF ONTARIOPENSION BULLETINSEPTEMBER 2005 – VOLUME 14, ISSUE 3TABLE OF CONTENTSGeneral AnnouncementsBob Christie CEO and Superintendentof Financial Services .1Financial Services Tribunal ActivitiesAppointments of Financial ServicesTribunal Members . 121Court/Prosecution MattersCourt Matters .2Pension Hearings Before the FinancialServices Tribunal . 123Prosecution Matters . 4Financial Services Tribunal Decisionswith Reasons . 135Superintendent of Financial ServicesAdministrator Appointments —Section 71 of the Pension Benefits Act . 5Notices of Proposal to Make an Order . 7Notices of Proposal to Make a Declaration . 54 Notices of Proposal to Refuseto Make an Order . 66Please complete and return this form if you no longer wish to receive thePension Bulletin or if your address label is incorrect, or if you wish toreceive the Pension Bulletin in French:Orders that Pension Plans be Wound Up . 72I do not wish to continue to receive the Pension BulletinMy label is incorrect. Please revise as follows:Name:Title:Organization:Address:City: Province:Country: Postal:Please send copies of the Pension Bulletin in FrenchThank you for your assistance with the Mailing List ReviewConsents to Payments of Surplus outof Wound Up Pension Plans . 84Declarations that the Pension BenefitsGuarantee Fund Applies toPension Plans – Subsection 83(1)of the Pension Benefits Act . 88Allocations of Money from the PensionBenefits Guarantee Fund . 109

Pension BulletinPension BulletinAll publications provided by the Financial Services Commission of Ontario (FSCO) in writtenor electronic formats have been prepared by FSCO to provide general information about pensionmatters to the public.Information in this Bulletin or any FSCO publication is provided by FSCO upon the expressunderstanding that neither FSCO nor any member of the staff of FSCO is providing legal,actuarial, accounting or other professional advice or services whatsoever with respect to thematerial contained in this Bulletin or any FSCO publication. FSCO and staff of FSCO are notresponsible for any action, costs, damages or liability arising from the use of any informationcontained in FSCO publications nor in respect of the consequences of anything done or omittedto be done by any person in reliance upon the whole or any part of the contents of this Bulletinor any FSCO product.The Financial Services Commission of Ontario Act, 1997, S.O. 1997, c. 28 as amended, thePension Benefits Act, R.S.O. 1990, c. P.8 as amended, R.R.O. 1990, Reg. 909 as amended, theterms of the pension plan and trust, if any, and the policies, procedures and practices of FSCOshould be considered in determining specific legal requirements, and professional advice shouldbe sought.This material is owned by the Government of Ontario and protected by copyright law.It may not be reproduced or redistributed for commercial purposes without the priorwritten permission of the Queen’s Printer for Ontario.If it is reproduced or redistributed for non-commercial purposes, Crown copyright is tobe acknowledged.PERMISSIONTo request permission to reproduce all or part of this material for commercial purposes,please contact the Queen’s Printer’s representative:Senior Copyright AnalystPublications Ontario(416) 326-5153E-mail: copyright@gov.on.ca Queen’s Printer for Ontario, 2005ISBN 1481-6148Ce document est disponible en françaisVolume 14, Issue 3PLACESTAMPHEREThe Editor, Pension BulletinFinancial Services Commision of Ontario,5160 Yonge Street, 17th FloorBox 85Toronto, OntarioM2N 6L9

Pension BulletinGENERAL ANNOUNCEMENTSBOB CHRISTIE CEO AND SUPERINTENDENT OF FINANCIAL SERVICESOn September 6, 2005, Bob Christie assumed his duties as CEO and Superintendent of FinancialServices for the Financial Services Commission of Ontario (FSCO).Mr. Christie is well-acquainted with FSCO and its role as pension regulator through his workwith the Ontario Ministry of Finance, where he served as Deputy Minister from 2000 to 2004.From 1999 to 2000, Mr. Christie was Deputy Minister of Training, Colleges and Universities andhe has served in the Ministry of Intergovernmental Affairs as the Assistant Deputy Minister,Federal-Provincial Relations and as Assistant Deputy Minister, Policy Coordination in CabinetOffice.Mr. Christie joined the Ontario Public Service in 1975 with the Ministry of Treasury andEconomics. Over the years, he worked in a variety of capacities throughout the Ministry.Mr. Christie has a PhD in economics from Queen’s University.Volume 14, Issue 31

Pension BulletinCOURT/PROSECUTION MATTERSCourt MattersThe information set out below is current toDecember 12, 2005.I.Plumbers Local 463 Pension PlanThe Board of Trustees of the Plumbers Local463 Pension Plan has filed an applicationfor judicial review in respect of an orderissued by the Superintendent on October 6,2003, requiring the trustees to pay the costof an examination order of the Plan by theSuperintendent from the pension fund ofthe Plan. The application was withdrawn onOctober 17, 2005.II.Kerry (Canada) Inc.The FST conducted a hearing that arose from aNotice of Proposal in which the Superintendentproposed to order Kerry (Canada) Inc. toreimburse certain expenses paid from thepension fund and to amend its Pension Plan sothat only expenses for the exclusive benefit ofthe members could be paid from the fund.The FST released its decision on March 4,2004. The FST held that certain expenses wereto be reimbursed to the fund, while certainother expenses did not have to be reimbursedas they were incurred for the exclusive benefitof the members. The FST also held thatthere was no jurisdiction under the PensionBenefits Act, R.S.O. 1990, c. P.8 (PBA) for theSuperintendent to order a plan amended.A group of former members comprising theDCA Empaloyees Pension Committee forthe Pension Plan for the Employees of Kerry(Canada) Inc. has appealed the FST’s decisionto the Divisional Court.2In a separate decision on the refusal issue,the panel held that contribution holidayswere permitted and authorized by thetrust, and that there were no grounds for apartial windup or for an order compellingthe Superintendent to monitor the plan. Thepanel held that the conversion breached thetrust insofar as the revised plan text allowedsurplus from the defined benefit portionof the plan to be used to fund liabilities forthe defined contribution portion, as thisdiverted funds to the insurance contractwith Standard Life. The panel directed theemployer to either amend the plan text ortransfer the defined contribution funds to thetrustee; if this is not done within 90 days, theSuperintendent is to refuse registration of therevised plan text.Finally, the panel issued a separate decisionconcerning the members’ committee’s requestthat the legal costs incurred by the committeebe paid out of the fund for the Plan. Themajority of the panel determined that the FSTdid not have the jurisdiction to make suchan order and also rejected the committee’srequest that costs be awarded against theemployer.In a separate Notice of Appeal, the members’committee has also appealed the panel’sdecision on the refusal and costs issues to theDivisional Court.The appeal on the expenses issue was heardby the Divisional Court on March 31, 2005and April 1, 2005. The appeal on the refusaland costs issues was heard on April 18 and 19,2005. The panel reserved its decision on bothappeals.Volume 14, Issue 3

Pension BulletinIII.Participating Co-Operatives ofOntario Trustee Pension PlanThe Board of Trustees of the ParticipatingCo-Operatives of Ontario TrusteedPension Plan filed an application before theDivisional Court under Rule 14 of the Rulesof Civil Procedure, the Pension Benefits Actand the Trustees Act for the appointment ofreplacement trustees or an administratorand a declaration discharging the currentTrustees. The application was initiallyscheduled to be heard on February 3, 2005 butwas rescheduled to February 8, 2005 at whichtime the hearing was adjourned pending asettlement conference.IV.Vivendi Universal Inc.Vivendi Universal Inc. has filed anapplication with the Ontario Superior Courtof Justice for a declaration that the QuébecSupplementary Pension Plans Act does notcompel Vivendi to transfer surplus on behalfof Québec members on an asset transfer toDiageo Canada Inc. The application also asksfor a declaration that the PBA applies to thetransfer.The Régie des Rentes du Québec broughta motion to have Vivendi’s applicationdismissed on jurisdictional grounds. Themotion was heard by the Ontario SuperiorCourt on March 2, 2005. The court reservedits decision. On April 5, 2005, the Courtreleased its decision, dismissing the motionwithout prejudice to the Régie to raise theissue of mootness on the main application.On May 10, 2005, the Régie’s appeal of thisdecision was heard and dismissed.Volume 14, Issue 3The application was heard on the merits onOctober 27 and 28, 2005. The court reservedits decision.V.Bourdon v. StelcoThe Supreme Court of Canada heard thisappeal on June 10, 2005. The Superintendentobtained intervener status. The issues werewhether the Quebec courts had jurisdictionto hear the matter when the Superintendenthad already approved the partial wind upreport, and whether members in Quebec wereentitled to grow-in benefits under the PBAby virtue of the pension plan providing thatthe PBA applies to any wind up of the plan.The Supreme Court dismissed the appeal onJune 10 and indicated that reasons would bereleased in due course.The reasons were released on November 10,2005. The court held that the Superintendent’sapproval of the partial wind up report wasfinal, and therefore the matter was res judicata.There were also no discretionary reasonsto decline to apply the doctrine of issueestoppel, as the members had not attemptedto challenge the Superintendent’s approval inOntario. Finally, the court held that Ontariowas the proper forum for this dispute. TheCourt therefore, did not rule on the grown-inissue.3

Pension BulletinPROSECUTION MATTERSI.Global Crossing Conferencing Canada Ltd.The corporation was charged, as theadministrator of the Employee RetirementPlan for Global Crossing Conferencing- Canada Ltd., with failing to file PensionPlan Financial Statements for the fiscalyears ending 2001, 2002 and 2003, failing tofile the Annual Information Return for thefiscal years ending 2001, 2002 and 2003 andfailing to pay the filing fees for the AnnualInformation Return for the fiscal yearsending 1995, 2001, 2002 and 2003. The firstappearance was on February 9, 2005. OnJune 15, 2005, the corporation pleaded guiltyto three counts of failing to file AnnualInformation Returns and three counts offailing to file financial statements. A total fineof 10,000 exclusive of Victim Fine Surchargewas levied in respect of all counts.II.AON Consulting Inc. and J. MelvinNortonCharges were laid on April 11, 2005 for failingto comply with accepted actuarial practiceand failing to comply with section 22 of thePBA. The charges relate to the preparation andfiling of two actuarial reports for the SlaterStainless Corp. CAW and USWA pensionplans. The charges are currently being pretried and a trial date will be set soon. The firstappearance was on May 18, 2005. A pre-trialconference was initially convened on June 22,2005 and continued on August 22, 2005 andSeptember 26, 2005. The pre-trial conferenceresumption and next appearance arescheduled for November 7, 2005. Trial dateshave been set for May 12 and June 23, 2006.4Volume 14, Issue 3