|Pension Lawsuit Implementation Plan Decision and Payouts|
To: TEAM-IFPTE Local 161 Members
From: Bob Linsdell, TEAM DB Pension Plan Committee Representative
Date: December 10, 2014
Re: Pension Lawsuit Implementation Plan Decision and Payouts
Court Hearing – Justice Bryk approved the Implementation Plan on November 3rd; the first day of a scheduled three-day hearing. Such a quick decision is confirmation that the hard work of all parties to the implementation negotiations and the preparations by our lawyers, Brian Meronek and Kris Saxberg of D’Arcy and Deacon, working with MTS and the other experts, was worth the effort. December 3rd was the last opportunity that the decision of Justice Bryk could have been appealed. No appeal was filed and the distribution of the surplus award can now proceed as planned. The Pension Lawsuit Settlement Implementation Order of Justice Bryk is a quick read and is available here. His more extensive Reasons for Decision are here.
Pension Lawsuit Settlement Payouts and Transfers – On December 24, 2014, all employees in the DB Pension Plan who elected to receive lump sum payments, will receive the first of two distributions. This first distribution will be approximately one half of the lump sum cash payment shown on the Statement and Election of Estimated Benefits. The second and final payment for the balance of the entitlement will be made in 2015 once final calculations have been completed. For those employees who have elected to transfer funds into an RRSP, these transfers will be made as soon as possible during the first few weeks following December 24th. Full details can be found here or at mtspension.ca in the section “Current Employees”.
The Pension Formula – The YMPE issue with the formula was resolved by agreement during the pension award implementation negotiations. The old calculation method resulted in some employees who retired part way through the year, receiving a lower pension. MTS will now calculate pension benefits using the Year’s Maximum Pensionable Earnings for each partial year included in the Pension Benefit calculation based on a proration of credited service for that same year. For employees the new calculation methodology takes effect January 1, 2015.
TEAM-IFPTE Local 161
204-984-9470 or 1-877-984-9470