CANADA - Trustees of the Canadian Commercial Workers Industry Pension Plan (CCWIPP) are being sued by the Financial Services Commission of Ontario (FSCO) for allegedly failing in the administration and investment of the fund.
The report also cites careless bookkeeping and potential conflicts of interest over a six year period from 1997 to 2003.
As a result, 85 former workers of the closed Natural and Organic Food Group (NOFG) pork plant in Charlottetown have learned they will be receiving less than half the pension they were expecting.
About 300 employers across Canada pay into the fund, and more than 300,000 workers were hoping to draw a pension from it.
The FSCO's court case is scheduled for later this month but one worker from the pork plant doesn't expect it to help him financially.
Paul Whiteway, the former worker, told CBC News: "I think it's just going to give the pension plan a slap on the wrist, and they'll take the court costs out of the pension plan and that'll be it."
The workers had asked the Prince Edward Island (P.E.I.) government to step in to avert a financial crisis and demanded for legislation to be brought in to prevent anything like this from happening again in the future.
However Richard Brown, the minister responsible for the P.E.I. lending agency, said the government was aware of the situation, but for now was not prepared to intervene and help.
PP has analysed the accounts of the biggest pension consulting firms and recorded the turnover (revenue) in their most recent accounts. The full leaderboard is below…
UK defined benefit (DB) schemes have increasingly undertaken benefit reviews over the last four years resulting in an acceleration of scheme closures, Aon research finds.
Contributions are no longer sufficient to meet regular payments for three-quarters of small- to medium- sized defined benefit (DB) schemes, Buck analysis finds.