Work is continuing towards implementation of the payout of the pension plan surplus. We had hoped that payouts would be made before the end of this year but recent developments have left that in doubt.
We have been notified by the Office of the Superintendent of Financial Institutions (OSFI), the federal body that regulates pension plans, that it is seeking to confirm that contributors, employees and pensioners have been consulted before funds can be distributed.
We are writing to OSFI officials to provide them with more details on the role the PNA played both in achieving and ratifying the the Memorandum of Agreement (MOA). Our goal is to offer assistance and provide evidence to demonstrate consultation is and has been taking place.
What we have been told is that OSFI requires that two-thirds of all contributors must agree to the distribution of pension surpluses. It seems the regulator is prepared to accept that the Unions represent all of their members but while the PNA is recognized by the CBC as the only official representative of pensioners, it does not have the same kind of legal recognition. OSFI is therefore requiring further evidence of the will of retirees. We are hopeful our submission will assist in convincing the regulator its concerns have been addressed.
We are convinced the vast majority of employees and retirees do support the payout and that it will go ahead as agreed in the MOA. What we cannot know is what the impact will be to the timing of the payout.
We will continue to update you on developments.
Donald Langis & Dan Oldfield