Pension plan member’s request ignored

|Canadian Employment Law Today

Weavexx Corporation is a Canadian corporation engaged in the manufacture and distribution of products used in the pulp and paper production process. It is a majority-owned subsidiary of BTR Canada Holdings Inc., which is a Canadian affiliate of BTR Inc., a Delaware corporation. Weavexx employees had the benefit of a pension plan.

In 1993 members of the pension advisory committee (PAC) for retired salaried employees of Weavexx wrote to the Pension Commission of Ontario advising that there had been substantial downsizing in the ranks of salaried employees at Weavexx. In 1995 PAC learned that BTR had made an application to the Pension Commission of Ontario to consolidate the pension plans of all of its affiliates in Canada and the United States.

In response to this, PAC wrote to the Superintendent of Pensions requesting that the Weavexx Pension Plan be wound up, thus ensuring that the employees and former employees would not lose their potential right to a distribution of the substantial surplus. When no response was received, PAC again wrote to the superintendent a year later urging a partial wind-up of the Weavexx pension plan.