Pension Plan Victory for TEAM-IFPTE Local 161

TEAM-IFPTE Local 161 is pleased that on January 30, 2014 the Supreme Court of Canada ruled in favour of the retirees and the unions and reinstated a lower court ruling "requiring MTS to make the $43.364 million in Initial Surplus plus interest at the New Plan rate of return from January 1, 1997 to the date of payment (plan rate interest) available to plan members to be used to pay for enhancements to their pension benefits."



The lawsuit arose from the 1997 privatization of Manitoba Telecom Services (MTS) when plan member pension funds were transferred from the Government plan to the new MTS plan. Plan members contributed $43.364 million more than the employer, resulting in an Initial Surplus which plan members believed would be used to improve plan benefits and would not be used as it was, to reduce MTS's costs or contributions to, the pension plan. Executive Director, Bob Linsdell, said "this decision is affirmation that the surplus did indeed always belong to the plan members."



Pension benefits are expected to be increased by $43 million, plus interest calculated at a rate equal to the pension plan's rate of return since 1997, which could increase pension benefits in time by up to $147 million.

< View All News