On October 1, 2010, Morneau Shepell Ltd. (“Morneau Shepell”), was appointed as the Administrator of the Plan by the Superintendent of Financial Services (“the Superintendent”). The Superintendent made this appointment in accordance with the provisions of subsection 71(1) of the Pension Benefits Act, R.S.O. 1990, c.P.8.
Status of Wind Up Reports
Settlement of the basic benefits under the Nortel Negotiated Pension Plan is now mostly complete (most Ontario pensioners have not yet been settled by an annuity purchase, but are receiving pensions at the final funded ratio – the annuity purchase for them will likely occur after the CCAA claim against the estate is settled). Settled benefits did not include any proceeds that may be obtained from the estate of Nortel pursuant tour CCAA claim. When this claim settles, members and/or their estates will be entitled to further payments from the Plan. It is therefore important that you keep us informed of any changes to your address or contact information to ensure that you receive what is owing to you.
Message for Nortel Retirees concerning the Plan’s Custodian
As part of our wind up administration, we evaluated the fees and capabilities of the current financial institution providing custodial services to the Plan. As a result of our review, we have changed the Plan custodian from Northern Trust to CIBC Mellon. This change will become effective in March 2012.
CIBC Mellon, the new custodian of the Plan, will have the responsibility of issuing the monthly pension payments starting with your March 2012 payment. We have provided CIBC Mellon with all details pertaining to your monthly pension payments and your specific banking information. We do not anticipate any disruption in the processing of your monthly benefit.
Effective immediately, please ensure that any changes to your tax deductions, address, marital status or other personal information relevant to the Plan are communicated directly to Morneau Shepell Ltd. Please do not forward any changes relevant to the Plan to Northern Trust, as they will not be processed.
Please note that you will receive two separate T4As for your 2012 pension payments. One from Northern Trust for your payments for January and February 2012 and another one from CIBC Mellon for your payments on and after March 2012.
Message for Nortel Retirees outside Ontario who do not have an entitlement to an indexed pension (e.g. former Prism employees and many pre-1988 retirees)
Concerns have been expressed by Nortel pensioners who are not eligible for indexed benefits and have pensionable service in a province other than Ontario and believe that they should be receiving a higher benefit than we have calculated for them. They point out that Ontario members receive a higher funded ratio because they no longer get indexation and feel that they should be treated the same as Ontario members since their benefits are also not indexed. The purpose of this note is to explain why non-Ontario members with non-indexed benefits do not receive the same funded ratio as Ontario members.
It is important to note that Nortel had employees across Canada who were members of their Canadian pension plans, and each province in which members worked has its own pension legislation that determine how benefits are treated when a plan is wound up and assets are insufficient to fully fund plan liabilities (pensions). The important difference is the treatment of benefits under Ontario’s legislation and that of all other provinces.
Section 30 of the regulations under the Ontario Pension Benefits Act (PBA) (Ontario being the province in which the Nortel pension plans were registered) prescribes the process for dividing assets amongst the various provinces where a pension plan had members. In essence, assets are allocated to provinces in proportion to the liabilities earned in each of those provinces (e.g. if 25% of Plan benefits were earned in Quebec, 25% of Plan assets would be allocated to the “Quebec” portion of the plan).
For all provinces other than Ontario, the funded ratio is simply the assets allocated in respect of pensionable service in that province divided by the liabilities for pension benefits payable in respect of employment in that province, whether the benefits are indexed or not. Our actuaries have determined, on a preliminary basis, that the funded ratio calculated in this manner for benefits earned outside Ontario is 59% for the Managerial Plan and 57% for the Negotiated Plan. This funded ratio applies whether the benefit to which the member is entitled is indexed or not.
Ontario’s rules for the calculation of the funded ratio are different than those of all the other provinces. The PBA provides that, where Ontario’s Pension Benefits Guarantee Fund (PBGF) applies to the wind up of a pension plan (as is the case in the Nortel plans), all future indexation of benefits is eliminated unless all non-indexed benefits can be fully funded first (which is not the case with respect to Nortel’s pension plans). With future indexation removed, total liabilities in Ontario decline whereas the total assets available to meet those liabilities remain the same. Since the funded ratio is simply the assets divided by the liabilities, this means that the funded ratio increases. Note that Ontario’s rules provide that the recalculation of the funded ratio is done on a province-wide basis and not an individual basis. This means that the funded ratio increases for all members, whether their individual benefits were originally indexed or not. Our actuaries have determined, on a preliminary basis, that the funded ratio calculated in this manner for benefits earned in Ontario, which are all now non-indexed, is 70% for the Managerial Plan and 75% for the Negotiated Plan. This funded ratio applies prior to the application of any eligibility for a “top-up” from the PBGF.
Some members have suggested that the fact that Ontario members are receiving a higher funded ratio has resulted in non-Ontario members receiving a lower ratio. This is not the case. The higher funded ratio in Ontario is “paid for” by the loss of entitlement to future indexation in Ontario by those members who would have been otherwise entitled to such indexation. Members outside Ontario who were entitled to indexed benefits retain that entitlement, and any annuity purchased for them will be an indexed annuity and any lump-sum transfer (available to certain deferred pensioners not yet in pay) will include the value of indexation. Members in Ontario who were entitled to indexed benefits no longer have that entitlement and the annuities purchased for them will not be indexed but will reflect the higher non-indexed funded ratio.
Pensioners with service in provinces other than Ontario who did not have indexed benefits do not receive the higher funded ratio because no indexation was eliminated in respect of their benefits. There is therefore no elimination of plan liabilities that would “pay for” an increase in the funded ratio, as is the case in Ontario.
Questions and Answers
General
Q. How do these pension reductions affect people who took their commuted value?
A. The commuted value payments that were made from the Plans prior to our appointment were made in accordance with the provisions of the Pension Benefits Act (PBA) and court orders under the CCAA process. Where members were paid partial commuted values from the Plans, their entitlement to a further payment will depend on a comparison of the amount that they have already received with the amount they would have been entitled to under the wind up. If the amount they have already received is less than what they are entitled to under the wind up, they may be entitled to a supplementary payment.
Q. Is there further reduction expected or possible? Could we be subject to another reduction if the fund performs poorly in the future?
A. We consider this extremely unlikely. Having liquidated the equity holdings of the Plan portfolios and purchased bonds to immunize against volatility in liability due to interest rate movements, poor fund returns should not have a material impact on the Plans’ funded ratios. It is likely the final funded ratio will be higher than the current estimate.
Q. How many pensioners are there in the Managerial Plan? How many pensioners are there in the Negotiated Plan?
A. The most-recent fully reconciled defined benefit membership is summarized in the Mercer actuarial reports as at December 31, 2009. The reports show that there are approximately 5,700 pensioners in the Managerial Plan and 6,000 pensioners in the Negotiated Plan. Total membership in the defined benefit portions of the Nortel Plans (including those members who have not yet commenced their pensions is about 13,000 in the Managerial Plan and 8,200 in the Negotiated Plan. In addition, about 5,700 individuals are entitled to defined contribution benefits, although many of these individuals also have membership in the defined benefit portion of the Plans. Note that these numbers are changing over time.
Q. How do I determine whether I’m a member of the Managerial Plan, the Negotiated Plan or a combination?
A. Our retiree cutback letters indicated which Plan documentation from Nortel indicated you are a member of. If you are unsure or believe the documentation is incorrect,, please contact our call centre.
Q. Has everyone received a letter from Morneau? Is it normal not to have received a letter?
A. All members have been sent letters from us. If you believe you are a member and have not received any correspondence from us, we either do not have you recorded as a Plan member, do not have a correct address for you, or your letter was lost in the mail. Please contact our call centre if you are a Plan member and have yet to receive any communication from us.
Q. How long will the wind-up take? Is it correct that the wind-up will still be ongoing in 2018?
A. Pension wind ups can be lengthy, and the Nortel wind up is both the largest and most complex in Canadian history. We are not in a position yet to determine when the wind up will be complete.
Q. If I am a disabled member of the DC Plan, can I get a lump sum amount associated with my ‘accumulated’ pension and invest it myself in a locked-in RRSP? Can I do this now?
A. If you were an LTD member and terminated employment in a province which permits owners of locked-in RRSPs to withdraw funds based on financial hardship (these provinces are Alberta, Nova Scotia, Ontario and Quebec), you can immediately transfer up to 50% of your DC account to a locked-in RRSP. Once the wind up reports for the DC portions of the Plans are approved (which we expect to occur in the first half of 2012), members will be able to transfer their entire accounts (less any administration fees) to a locked-in account, irrespective of the province in which you terminated employment. Members who had previously transferred 50% of their entitlement will be able to transfer their residual balance on approval of the wind up report.
Q. Can we receive an Earnings Statement Summary by e-mail after August 25, 2011, since the physical slip is being discontinued? Or, could that information be available on-line somehow?
A. You will only receive an Earnings Statement Summary after August, 2011, if the information contained in the summary changes. This change was introduced as a cost-savings measure. If you need a replacement please contact our call centre.
Q. Will the pension paid date continue to be the 25th of each month? Will it be direct deposit as before?
A. Pensions will continue to be paid on the same day of the month as before (not all pensions were paid on the 25th). They will continue to be paid in the same manner as before, either by direct deposit or by cheque.
Q. Will our pension payment continue to be paid by Northern Trust after August 25?
A. Yes. It is possible that we may switch custodians in the future, but if so, there should be no disruption in pension payments.
Q. What happens to those who want to start their pension later this year?
A. They should contact our office and request a retirement quote. Once the appropriate forms are completed we will commence their pensions. This process can take several months so we encourage people to make their requests early.
Records / Province of Employment
Q. Older pensioners may not have detailed records of employment. What will be acceptable?
A. We understand that pensioners may not have detailed records or perfect memories of the dates in which they changed province of employment. We just ask that you do the best you can in providing us this information. If you are unsure regarding the dates please indicate the approximate date and we will work with the available information. If you need assistance please contact our call centre.
Q. Does the last province of employment (e.g., Saskatchewan) determine which government authority one will have to eventually deal with once all is settled, even though the person no longer lives in that province?
A. In general, the province in which you terminated employment will be the province whose legislation determines which options you have on the wind up (i.e., annuity v. lump-sum, locking-in rules, financial hardship access, etc.). However, the Pension Benefits Guarantee Fund (PBGF) applies to the portion of your pension earned in Ontario, regardless of your last province of employment. Subsequently moving to a different province does not change this.
Q. What is the deadline to submit corrections? How long after we submit corrections will the official records be updated?
A. We have no deadline as of yet, but encourage you to submit the information as soon as practical. We update the records as we receive the information. Pension payments will be adjusted in due course, once we receive most of the corrections.
Q. How do we verify whether other data Morneau has is incorrect (i.e., age)?
A. Later in the wind up process, all members will be provided with “profiles” that outline the key information upon which their pensions will be based. They will have an opportunity to review this information and advise us of any errors.
Q. I commuted daily from Ottawa, Ontario to Aylmer, Quebec for four years. I was always paid and taxed as an Ontario resident, not Quebec. How should I show this as Ontario service on my work history form?
A. If you reported to Quebec for employment, your service is in Quebec. The province in which you resided is not relevant. Please refer to the following Q and A for further details.
Q. If an employee outside Ontario reports to a head office in Ontario, is this considered Ontario employment?
A. For purposes of determining the province in which a member was employed (and hence which province’s pension legislation applies), Canadian pension legislation provides that a pension plan member is employed in the province where the member reports to work (i.e. the location in which they worked). Province of residence is not relevant. If you reported to work for a number of years in Ontario, Ontario’s pension legislation would apply to those years.
For those employees who did not report to any location (e.g. a salesman with no office), they are deemed to be employed in the province from which their remuneration is paid. If you think the information contained in your letters is incorrect, please respond as requested and provide us with the correct information.
Nortel Estate Recovery
Q. Why isn't the sale of Nortel's patents helping the pension fund?
A. The sale proceeds from Nortel’s patents are being held in an escrow account pending a determination of how Nortel’s international assets will be distributed among the various international estates. Because there remains considerable uncertainty regarding the amount that will be recovered on the claims made by the Plans and the timing of the payments, we have, on an interim basis, assumed zero recovery from the estate of Nortel in the calculation of the Plans’ preliminary funded ratios. We do expect that there will be a recovery, however, and there will likely be a significant increase in the funded ratios. The fact that the sale of Nortel’s patents resulted in a much higher recovery than expected should have a positive impact on the funded ratios when the estate is settled.
Q. What happens if you take a lump sum during the wind up process and there is a substantial recovery from the Nortel settlement after the Plan is wound up?
A. If you take a lump sum during the wind up and there is a subsequent recovery from the Nortel estate that has the effect of increasing the Plans’ funded ratios, we will recalculate all members’ entitlements and make a supplemental payment to those members who have received lump sums to reflect the increased funding. Similarly, those members who elect pensions during the wind up process will see their pensions increased.
Tax
Q. Will the tax rate percentage on the reduced pension be the same?
A. Not necessarily. Tax is calculated based on the amount of pension payable. If the pension reduction results in your total annual pension income falling into a lower tax bracket the rate at which you are taxed will decline. If you wish to maintain a higher rate of tax deductions please contact our call centre.
Q. How will overpayments or underpayments impact our tax returns?
A. In general, you will pay tax on the actual amounts of pension income you receive for the year in which it was paid.
Plan Funding / Indexing
Q. What does "indexation" mean? Please explain in layman’s terms.
A. Many (not all) Nortel pensions were increased to provide members with protection against inflation. There are several different formulas for indexation, depending on which part of a Plan you were in and when benefits were earned, but most provisions provided that pensions would be increased each year by an amount that was related to changes in the Consumer Price Index (CPI).
Q. Why is Ontario reduced to 70% and Quebec only to 59%?
A. In all provinces other than Ontario, members are entitled to whatever percentage of the Plans’ liabilities that the Plans’ assets can cover, whether those benefits are indexed or not. For provinces other than Ontario, we have determined on a preliminary basis that assets are sufficient to provide for 59% of benefits in the Managerial Plan and 57% in the Negotiated Plan.
Ontario’s pension legislation eliminates indexation from the plan’s liabilities (i.e., members who were entitled to indexed pensions lose that right) and then requires the Plans’ funded ratios be recalculated based on these reduced liabilities. This increases the Plans’ funded ratios (funded ratio being assets divided by liabilities) for the Ontario portion of the Plans (to 70% in the Managerial Plan and 75% in the negotiated Plan). Note that this is done on a province-wide and not an individual basis – the funded ratio is increased for all members’ pensions earned in Ontario, irrespective of whether the pension was indexed.
Q. If a province other than Ontario agreed to give up indexing, would we get the same ratio as Ontario?
A. Not necessarily. Another unique feature of Ontario’s legislation is that, where a plan is covered by the Pension Benefits Guarantee Fund (PBGF), members benefits are fixed at the wind up date (October 1, 2010). If Plan experience subsequent to that date (e.g., significantly less favourable annuity prices, etc) has the effect of reducing the funded ratio, the PBGF will cover these losses. This fixing of the funded ratio at the wind up date does not apply to pensions for service in provinces other than Ontario. This means that we are more “conservative” (i.e. err on the side of caution) in setting the preliminary funded ratio for non-Ontario service than for Ontario service.
Q. What are the differences between the Ontario and non-Ontario funded levels of the plans?
A. The funded ratios for the Negotiated Plan are 75% for Ontario service (non-indexed) and 57% for non-Ontario service (indexed). The funded ratios for the Managerial Plan are 70% for Ontario service (non-indexed) and 59% for non-Ontario service (indexed).
Q. Why is the Managerial Plan funded at a lower level than the Negotiated Plan?
A. On the whole, both plans are similarly funded. A major difference between the two plans is that the Negotiated Plan has significantly greater indexation provisions than the Managerial Plan. This means that the increase in the funded ratio for Ontario members when indexation is eliminated is greater in the Negotiated Plan than in the Managerial Plan. For non-Ontario members, the degree of conservatism is higher in the Negotiated Plan because the existence of many highly indexed pensions results in greater uncertainty regarding future annuity prices.
Q. There are people in provinces other than Ontario who have not seen indexation on their pensions for many years. Why are we being penalized in both ways?
A. They are not being penalized. Since members in those provinces are not giving up indexation they are not seeing any increase in the funded ratio like members with Ontario service where indexation has been eliminated.
Q. According to Morneau Shepell, when is the last indexation done for members?
A. Indexation increases were generally done in the month of the pensioner’s birthday. Indexation increases were maintained up to and including the December 2010 payment for all members. Ontario members who received indexation after the wind up date of October 1, 2010, were not, under Ontario rules, entitled to indexation increases and have had those increases treated as overpayments.
Q. You have stated that conservative assumptions were used for the purpose of these pension reductions. What will be done to correct this conservatism in the future?
A. The conservatism (the technical term is a Provision for Adverse Deviations, or PAD) was used in calculating the preliminary funded ratio used for interim cutbacks for non-Ontario service. When benefits are settled the final funded ratio will be known and benefits will be adjusted (we believe increased) to reflect the final funded ratio.
Options
Q. Will annuities take into account survivor benefits? (i.e., does the surviving spouse still get 60% of the pension after the partner passes away?)
A. Yes. The annuities purchased will have the same features as the pensions that members are receiving. If the pension has survivor benefits or remaining guarantee features, the annuity purchased will also have those features.
Q. Will we have a choice between annuity and lump sum?
A. Different provinces have different requirements so the options available will vary depending upon the province in which you terminated employment, and whether you have commenced pension benefits or not. Further information regarding your options will be provided later in the wind up process.
Q. If an annuity is chosen, how long will it go on for?
A. For current retires, if your pension was a “life-only” pension, it will continue for the rest of your life. If your pension was a “joint and survivor” pension (i.e., it had a spousal benefit) a portion of your annuity will be payable to your spouse if s/he survives you for the rest of their life. If your pension had a guarantee period and you die prior to the expiry of the guarantee, your annuity will continue to your beneficiary or estate until the end of the guarantee period. Those eligible members who elect a pension during the wind up process will be offered the same pension options that were offered by the Plans.
Overpayments
Q. The deduction to recover 10 months of overpayments for my lifespan will surpass the $52.43 (my monthly overpayment) times 10. Why?
A. The reduction to recover the overpayments is determined using the basis recommended by the Canadian Institute of Actuaries (CIA) to calculate commuted values of pension benefits (i.e. future payments are discounted at an appropriate rate). The basis reflects current interest rates and probabilities of living to various payment points in the future.
Q. What interest rate have you assumed for the overpayments recovery?
A. These rates vary depending upon the extent to which your benefits are indexed. The rates for non-indexed benefits are 3.6% for the first 10 years and 4.8% thereafter. The equivalent rates for fully indexed benefits are 1.7% for the first ten years and 2.0% thereafter.
Q. Can you pay back the overpayment immediately?
A. No. We have done this on another plan wind up in the past, and found that it was confusing to members and difficult to administer. We think that the methodology adopted is the fairest to the membership as a whole and the most efficient from an administrative perspective.
Q. If I pass before the age of 85 does that mean I die with a debt owing?
A. No. If you die no further recovery of overpayments will occur.
Q. Is the "current value" of our pension being calculated including the indexing benefit we were supposed to receive, or will younger people (who will live through more inflation) simply be out of luck?
A. Those people with service outside Ontario remain entitled to indexed benefits, and the annuity they receive on settlement will be indexed or the lump-sum transfer they are entitled to will include the value of that indexation. This is not true for members with Ontario service where indexation is lost.
Underpayments
Q. New pensions in 2011 commenced at 50%. Members who retired before 2009 now get a different value which is greater than 50%. Will retroactive payments be made to those who have been underpaid?
A. Yes, they are entitled to be compensated to reflect the fact that they were underpaid. We intend to make this payment in a lump-sum but have not yet determined the timing.
PBGF
Q. Re PBGF: Is this a one-time payment that has already been made, or can the Ontario government change its mind?
A. We have received an interim amount from the PBGF which reflects our preliminary estimate of the amount needed to fully fund the PBGF guarantee. Only later in the wind up process will the full PBGF liability be known and, if further funds are required they will be requested. If the interim allocation happens to be more than was needed, a refund to the PBGF will be made.
Q. You use the word member and service. Does the member’s province of service depend on where your employment terminated, regardless of service? Will an Ontario ‘member’ receive 100% PBGF?
A. Benefits are earned in the province in which a member was employed, so if 50% of a member’s service was in Ontario, 50% of their benefits will be paid at the Ontario rate and 50% at the non-Ontario rate, and the PBGF will apply only to that portion of their benefit that was earned in Ontario. For purposes of the options available to members on the wind up (e.g., lump-sum transfers versus annuities), these are determined by the province in which you terminated employment.
Q. For those who are not on pension yet, and choose lump sum after they get their package, are they eligible for the Ontario pension guarantee and how would it be paid/calculated?
A. Yes, if they have Ontario service and are otherwise PBGF eligible, the value of their lump-sum payment will include any PBGF eligibility. Lump-sum payments are calculated based on the pensions that members would otherwise have been entitled to receive.
Q. Are there any scenarios where we would have to repay what was received from the PBGF?
A. There may be a refund payable to the PBGF from the Plans if the final funded ratio is higher than currently estimated, at which point we would recalculate the PBGF liability based on the increased funded ratio. Any increase in the funded ratio will also increase the benefits payable to most members and members would not have to pay anything personally back to the PBGF.
Q. Will PBGF need to be paid back after wind-up?
A. Possibly, depending on the final funded ratio. If the funded ratio is significantly higher, a refund of a portion of the amount paid by the PBGF would likely be made by the Plan. Individual members would not have to repay anything to the PBGF.
Q. Is the PBGF top up effective October 1, 2010?
A. Yes
Q. Does the survivor benefit qualify for PBGF top-up?
A. Yes. Survivor benefits payable from the Plans and in pay as of the wind up date are subject to the PBGF guarantee. After the wind up date survivors will receive the same percentage of the member’s pension to which they were entitled (60% of the members pension was the most typical survivor pension). Those percentages will be calculated based on the members post wind up pension including PBGF eligibility.
Q. Is the PBGF top up subject to taxation?
A. All pension payments are income and hence potentially taxable, including any PBGF top-up.
Important Announcement
Since sending out letters indicating the reductions in pensions effective August, 2011, we have had a considerable response from members who have informed us that the information we had on file related to province of employment was incorrect, and submitted documentation that would result in changes in the monthly pension to which they are entitled. We have had a number of requests for information regarding when there pensions will be adjusted.
Given the volume of changes to be verified and processed, the adjustments to current (i.e. August) pensions will occur no later than December of 2011. Please note that any adjustments will be retroactive to the wind up date of October 1, 2010. We recognize that any delay in processing these changes may result in a temporary hardship for some pensioners and will endeavor to process them as quickly as possible.
Important Announcement Regarding Pension Reductions
This announcement is to advise you of an important issue regarding your pension from the Plan.
Based on the most recent actuarial valuation as at December 31, 2009, prepared by the prior actuary for the Plan, there were insufficient assets to fully satisfy the benefit entitlements of all members and pensioners.
Ontario Members
Overpayments
Pensioners have been paid 100% or their benefits subsequent to the wind up date of October 1, 2010, whereas they are only entitled to payments at the funded ratio after that date.
Current gross monthly pension payments will be revised effective with the August 25, 2011 payment (tax deductions will be adjusted accordingly).
We regret that such action is necessary in light of the Plan’s underfunding, but the Administrator is responsible for ensuring that all members and pensioners of the Plan are dealt with in a fair and equitable manner and in accordance with pension legislation.
Letters have been sent to all pensioners who were in receipt of pension benefits as of October 1, 2010, indicating the amount by which their pensions have been reduced. When you receive your letter, please review it carefully, particularly with regard to the information on your province of employment. If the information is incorrect please refer to the instructions outlined in the letter under “Verification of Province of Employment”.
A webinar will be hosted by Koskie Minsky on July 22, 2011, from 1:00 pm to 3:00
pm. We will be participating in this webinar to give you an opportunity to ask questions
about this required step in the wind up process. The webinar link is at www.bellwebcasting.ca/audience/index.asp?eventid=74164979.
If you do not have access to the internet, contact Koskie Minsky by July 20, 2011
at
New Retirements
The administrator has received the consent of Ontario’s Superintendent of Financial Services to start new pension payments to those members not yet receiving a monthly pension and who are eligible to commence either a normal (full) pension or an early retirement pension (in most cases at age 55). Because the Nortel plans are underfunded, the Superintendent’s consent provides that, as an interim measure, new pensions may be paid out at 50% of the full entitlement level (i.e., 50% of what you would have received if the plans were fully funded). The percentage payout may be changed in the future when we have further information regarding the funded status of the plan. Because the 50% estimate is based on conservative estimates, future adjustments are likely to be upward. For eligible members with Ontario service, new pensions will include any "top up" amounts payable under Ontario’s Pension Benefits Guarantee Fund (PBGF).
If you are eligible and wish to commence payments and have not yet requested a retirement quote, please complete a "Request for Retirement Quote" form under the "Forms" section of this webpage.
For those members who have already requested a retirement estimate from Morneau Shepell, we will be sending you shortly a Retirement Election of Option Form. This form will provide you with information used to calculate your pension entitlement, as well as the forms of pension that you may elect. If, after reviewing this information you decide to commence your pension, you must fill out the Election of Pension and Retirement Option portion of the form and return it to us along with any required documentation. We will then commence pension payments as soon as possible after the completed form has been returned. Your first pension payment will include pension payments owing from the date that you requested your pension to commence.
Subject to the following, pension plan members may, at any time during the wind up process, elect to commence their pensions if they are eligible to commence a pension under the terms of the plan.
Note that Quebec members not yet receiving a pension are not, under Quebec legislation, permitted to commence new pension payments. However, we are permitted to provide temporary advance payments to pension-eligible Quebec members from the commuted value transfer that will ultimately be paid to them. Any advance payments made will be deducted, with interest, from any commuted value transfer made when benefits are settled in the future.
Long Term Disability (LTD) Members
Like all other pensioners, LTD members who are pension eligible (usually aged 55 or older) will have the opportunity to commence a pension in accordance with the information outlined under "Important Notice – New Retirements". We also have received the consent of Ontario’s Superintendent of Financial Services to permit interim transfers for LTD members, whether of pensionable age or not, who have pensionable employment in those jurisdictions that permit members to apply to their pension regulator to "unlock" funds in their locked-in retirement account based upon circumstances of financial hardship. The transfers will be up to 50% of the estimated commuted value payout based on the funded ratio and will be deposited to a locked-in retirement account of your choosing. The three jurisdictions that permit unlocking in circumstances of financial hardship are Ontario, Alberta and Nova Scotia.
Those LTD members who had employment in the three eligible jurisdictions and who
wish to transfer a portion of their pension entitlement to a locked-in retirement
account should contact us at
Commencing on October 1, 2010, Morneau Shepell will be:
The completion of the member database will be required to enable us to commence regular written communication with Plan members. In the meantime, members may refer to this website for information and announcements regarding the administration and wind up process.
If you have any questions concerning our administration of the Plan, contact us by:
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Phone: |
1-877-392-2073, Monday to Friday from 8:30 a.m. to 5:00 p.m. (ET). |
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Fax: |
(416) 445-7989 |
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Mail: |
Morneau Shepell Ltd.
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Please return completed forms to the address listed above.
Communications letters have been sent to all plan beneficiaries for whom we have
an address. If you are a plan beneficiary and have not received a written communication
from us, please contact us at