April 23, 2020 - Hamilton Sal Plan Windup Notice

Stelco Inc. Retirement Plan for Salaried Employees at Hamilton Works, FSRA Registration Number 0338509 (the "Plan"), Notice of Plan Windup. 

April 20, 2020- MORNEAU SHEPELL – PLAN ADMINSTRATOR

 PLEASE NOTE:  THIS NOTICE DOES NOT APPLY TO MEMBERS OF THE LAKE ERIE SALARIED PLAN

(Please Note: The following information has been extracted from the notice mailed all Hamilton Salaried Plan Members by Morneau Shepell. For complete details, please refer to the Notice of Plan Windup, dated April 20, 2020, issued by Morneau Shepell and mailed to all members of the Stelco Inc. Retirement Plan for Salaried Employees at Hamilton Works.  The Q&A package included in the mailing is intended to address any concerns you may have. However, should you require any further information, please direct all inquiries to Morneau Shepell, either by mail, telephone, fax, or Email. Due to privacy legislation, SSPO/PAC cannot address any questions you may have surrounding your personal situation. Scroll down this page for contact information).

RE: Stelco Inc. Retirement Plan for Salaried Employees at Hamilton Works,

FSRA Registration Number 0338509 (the “Plan”)

Notice of Plan Wind-Up

On April 2, 2020 by delegated authority from the Chief Executive Officer (“CEO”) of the Financial Services Regulatory Authority of Ontario (“FSRA”) an Order to wind-up the Plan effective March 31, 2020 was issued. The Order followed a Notice of Intended Decision (“NOID”) issued on February 27, 2020, which gave the following reasons for the Plan wind-up:

• The Pension Benefits Act provides that the Chief Executive Officer of FSRA may order the wind-up of a pension plan in prescribed circumstances.

• The Ontario Regulation 255/17 (“Stelco Regulation”) provides such a circumstance exists when the Plan’s assets are equal to or exceed its wind-up liability, including the liability for expected wind-up expenses.

• In July 2019, Morneau Shepell completed a buy-in investment of annuities for each member, former member, retired member and beneficiary of the Plan. This purchase insured 100% of the benefits that had accrued as of December 31, 2018. The assets that remain invested outside of the annuity contracts are sufficient to satisfy the remaining liabilities and expenses of the Plan. As a result, the Plan’s assets are equal to or exceed its windup liability and the prescribed circumstance in the Stelco Regulation has been established.

The wind-up process

It will take several months to fully wind-up the plan. The Order completes the first step in winding up the Plan.

Next Steps

Morneau to prepare and file a wind-up report with the regulator, FSRA. The wind-up report sets out the financial position of the Plan as at March 31, 2020 and also sets out the entitlements that are to be provided by the Plan. Morneau Shepell is working expeditiously in preparing the wind-up report and expects to file the report in the third quarter of 2020.

FSRA will approve the wind-up report when they are satisfied that the report complies with the Ontario Pension Benefits Act and its regulations and that the entitlements of members, former members, retirees and beneficiaries are fully protected.

Upon receiving approval of the wind-up report, the third and final step is for Morneau Shepell to distribute all of the Plan assets. During this step, members and former members who are not retired will have the option of either receiving a life annuity or transferring their pension benefits to a locked-in retirement account. Life annuities will be purchased for retired members and beneficiaries.

Monthly pension payments will continue to be paid to all retirees and beneficiaries during the wind-up process without change or interruption.

All other Plan members will have the option to receive their Plan entitlement as a lump sum or a monthly pension.

Morneau Shepell will communicate with you in writing regarding the next steps and your Plan wind-up entitlement, after a wind-up report for the Plan has been filed with and approved by FSRA.

For more information

Please refer to the Q&A enclosed with your notification. If you require any further information, please send your correspondence to the address below: