Pension surplus update

The announced deadline of April 30 for responses from Plan members concerning the disposition of their surplus share has now passed and it is time for an update on where we are in the process.

The University's consultants are about to file the necessary documents with the Financial Services Commission of Ontario (FSCO). The normal minimum turnaround time is 90 days but the OPSEU strike (FSCO staff are OPSEU members) will likely extend this timeline.

Even after final approval from FSCO, the trustee, CIBC-MELLON indicates it will take another 5 to 6 weeks to process and distribute payments. This suggests September as the earliest date payments will be received by individuals.

The good news on this front, however, is that interest is being paid on the surplus shares until the time of distribution. Until recently, that was not much consolation as the market returns had been poor in our fund as in most others. However, the return from July 1, 2000 to March 31, 2002 is now 5.6% and recent monthly returns have been quite good. Let us hope this trend continues.

The Canada Customs and Revenue Agency (formerly known as Revenue Canada) will allow individuals to select tax sheltering options up until the date of approval by FSCO. Therefore, for the time being we will accept late option forms. Once we have a better idea about the approval timetable, we will announce a new submission deadline.

Over 3500 individuals have now responded by sending in their option forms. We still have some way to go and encourage you to submit your form. Even if you are happy to accept the cash-only default option (which will result if no response is received) it would help us if you would send in your form.

Once final approvals are received, payments to those who submit forms will likely be faster than to those members who choose not to submit their forms.

We appreciate the patience of plan members as we move through the final steps of the surplus pension distribution.

Les Robb – on behalf of the employee groups

Simon Ouellet – on behalf of the University

Surplus Hotline 905-525-9140 ext.24272

e-mail surplus@mcmaster.ca