On August 19th, 2016, the Northern Transportation Company Ltd (NTCL) appeared before a court in Alberta under the Companies’ Creditors Arrangements Act (CCAA). The company filed a motion to suspend its future “solvency deficiency” payments owed under the pension plan.
The Court ruled that the next monthly solvency deficiency payment will be paid into trust until the parties can present arguments at the next hearing date on October 26th. After arguments are presented, the court will rule on whether the payments can be suspended.
Although the NTCL Pension Plan has approximately $100 million in assets, there remains a “solvency deficiency”, and it is only 82% funded. This means that currently, the company can only pay out 82% of the pension payments owed to pension plan members. There are currently 83 active employee participants and 539 pensioners in the NTCL Pension Plan.
Layoff notices issued
On the same day, NTCL issued seasonal lay-off notices to PSAC/UCTE members to be effective September 2nd, 2016. Given the financial status of the company, it is unclear whether any of these employees will be recalled to work.
PSAC/UCTE demands meeting with government officials
PSAC/UCTE has sent an urgent request to Bill Morneau, the federal Finance Minister, for a meeting with the Finance Department and the Office of the Superintendent of Financial Institutions (OSFI) to explore all available options to protect the jobs and pension benefit entitlements of NTCL employees and pensioners.
PSAC/UCTE is committed to continue keeping our members up to date.
- Regular updates will be posted on the PSAC and UCTE websites.
- Additional information will be mailed directly to NTCL employees who are members of PSAC/UCTE, as well as NTCL pensioners who have provided their contact information.
If you have any questions or concerns about this process, please contact email@example.com.