Viterra has put a new proposal on the table in hopes of ending a long-simmering dispute over the funding of the pension plan for its Saskatchewan Wheat Pool staff represented by the Grain Services Union (GSU).
In a release Thursday, Canada’s largest grain handler said its new proposal will see it amend the existing SaskPool/GSU pension plan and take full responsibility to fund pension benefits for plan members, with no change to what active members pay in.
Viterra, formed this year by the merger of SaskPool and Agricore United, said it will also hand over $12 million it had set aside in trust pending the outcome of a related court case; drop the appeal it filed in that case if the GSU accepts this offer; and make future payments to cover the plan’s “solvency deficiency,” which it now figures to be about $19 million before the $12 million trust is paid in.
Read Also
Alberta Crop Report: Rains in the south, dryness in the north
Rain fell onto the southern half of Alberta last week, while hot and dry conditions persisted in the northern half, according to the province’s crop report released on July 18.
In return, Viterra will move all remaining active employees in the GSU plan from their “defined benefit” plan to a “defined contribution” plan by July 1, 2008 at the latest.
Also, Viterra wants the right to manage the financial risk for all benefits accrued under the pension plan, in return for assuming that risk. The current plan is controlled by trustees from both the union and company.
“The financial impact to the company associated with fully funding the plan will depend upon future plan performance,” Viterra said in a release.
Viterra said it would use pension plan assets to buy annuities for its current pensioner group. That group accounts for about 60 per cent of the plan’s liabilities.
GSU general secretary Hugh Wagner said in a statement Thursday that the union is reviewing the details with its lawyers and actuary and he’ll meet with representatives from affected bargaining units.
“Once the review process is complete, information will be provided to affected GSU members well in advance of any vote that might be held on the question,” Wagner said.
The plan now covers about 15 per cent of Viterra’s employees.
