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ONTARIO NORTHLAND TRANSPORTATION COMMISSION
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Note:
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Introduction: Harrison Pensa , Siskinds LLP and Ruter Scargall Benett prosecuting a proposed class action against the Ontario Northland Transportation Commission (ONTC), a wholly owned crown corporation carrying on business as an enterprise agency of the Ontario Government. The matter relates to management and use of the assets of the ONTC's employee pension fund. The Statement of Claim alleges that the pension fund is held in Trust by the ONTC and that it has committed breaches of its duties.
The Action: On November 13, 2002, a Statement of Claim was issued against the Ontario Northland Transportation Commission (ONTC). The proposed class action relates to the management and use of the assets of the ONTC Contributory Defined Benefit Pension Plan which applies to all permanent staff . The plaintiffs allege that since the foundation of the Plan in 1939, the ONTC has held the pension fund in trust for the benefit of all plan members. The statement of claim alleges that the ONTC committed the following breaches of trust: Ø Amending the pension plan to provide the ONTC with an ownership right in a substantial pension surplus Ø Amending the pension plan to grant the ONTC a unilateral power to amend and/or terminate the pension plan Ø Amending the pension plan to allow the ONTC to take contribution holidays, using the pension surplus to satisfy its annual contribution obligations to the fund Ø Amending the Pension Plan to allow for the financing of substantial employee buy-outs and severances using money from the pension fund Ø Amending the pension plan to direct that the administrative expenses of the pension plan would be paid out of the pension trust, reversing a 58-year old right held by members whereby the ONTC funded the administrative expenses Ø Amending the pension plan to create a disproportionate benefit calculation formula whereby retirees prior to 1999 were provided with a less generous pension than new retirees
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Status of Proceedings: The Certification Motion in this matter took place during the week of June 20, 2005 in the City of North Bay. Justice Hennessy reserved her decision. On June 6th 2006, Justice Hennessy released her decision. Certification was denied. Follow this link to review a copy of the decision.
An appeal was filed by the
Plaintiffs to the Divisional Court. The appeal was heard on
January 22nd and 23rd, 2007 in Toronto. The Plaintiffs were
unsuccessful in their appeal. A written application for leave to
appeal to the Ontario Court of Appeal has been filed.
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