WINNIPEG – The Supreme Court of Canada has agreed to hear arguments over a lawsuit regarding one of Manitoba Telecom Services Inc.'s (MTS) pension plans in Manitoba.
The litigation was brought forward by a group of plaintiffs comprised of unions and pensioners concerning events that transpired in 1997 when the Manitoba Progressive Conservative government of the day privatized MTS by offering shares to the public in 1997.
In February 2012, a panel of three judges on the Manitoba Court of Appeal unanimously agreed with the company and dismissed all of the plaintiff's claims. Manitoba's highest court of appeal set aside the prior decision of the trial judge and confirmed that the company had complied with its obligations and that no changes to the future funding requirements or any other aspects of the MTS Pension Plan were required as a result of this past litigation.
"It is unfortunate that this historical matter continues to work its way through the court system. We do not believe that the pending hearing will change the unanimous decision of the Manitoba Court of Appeal, which correctly applied the Supreme Court's recent rulings clarifying the state of pension law in Canada," said Paul Beauregard, MTS Allstream's Chief Legal Officer and Corporate Secretary.
"The Supreme Court understands the value both employers and employees place on a stable and predictable framework for pension law in Canada, and our external counsel are confident that the Supreme Court will confirm that the three senior judges on the Manitoba Court of Appeal correctly applied all aspects of current Canadian pension law."
A decision from the Supreme Court is expected within the next 12 to 18 months. MTS says there will be no changes to the company's expected future funding requirements or any other aspects of the MTS Pension Plan until the appeal process is completed.
Over the years MTS says it has remained committed to funding this pension plan, and has contributed approximately $604 million. Employee contributions over the same period totaled $157 million.
