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After three years of worry over their retirement security, some good news for former employees and retirees of Wabush Mines as they are set to see an increase to their pensions.
It was three years ago that the operation filed for bankruptcy, writes Jennifer Paterson for Benefits Canada. Now, following a proposed settlement, and a previous reduction of between 21 and 25 per cent, former employees and retirees are due for an increase.
“While the amounts won’t be public until the court overseeing the company’s insolvency approves a settlement in principle, they’ll meaningfully increase the funded status of its defined benefit pension plans, according to Andrew Hatnay, a partner at Koskie Minsky LLP and counsel to salaried employees and retirees of Wabush Mines,” she writes, adding that Hatney had written the settlement “will translate into monthly pension benefit increases to offset the reductions that the retirees are currently enduring.”
It all amounts to good news, Rita Pynn, co-chair of the Wabush pension committee, is quoted saying.
More: Plans had deficits of $55 million when terminated.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapension

 

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