Pension Surplus Update
(General Notice sent to McMaster Community on December 9, 2002)

This memo is to bring you up to date on the pension surplus distribution.  We are sorry to report that there will be no surplus distribution before the end of the year.
 
The appeal we mentioned in our last communication has not been withdrawn, and the earliest the Financial Services Tribunal could schedule the pre-hearing conference was January 20, 2003.  This pre-hearing will determine who has party status at the hearing and will determine the schedule of future hearings.  Unfortunately, the tribunal cannot deal with the merits of the appeal at the initial meeting.  It is likely to be several months before the tribunal holds a hearing to deal with the appeal itself.  We will have a clearer picture after the January pre-hearing conference and will advise you of the outcome as soon as possible.
 
One other matter we wish to report to members is the financial status of the pension plan.  With the turbulence of the stock markets many plan members have been concerned about whether there are sufficient funds to allow the distribution at this time.  Although we share your concerns, the University and the Members' Committee have reviewed updated financial information and agree that we are still in a position to work towards completing the pension surplus distribution as planned.  We will advise the Financial Services Commission of Ontario (FSCO) of the current financial position of the plan and our intention to complete the distribution.

We will continue to provide updated information to plan members as it becomes available.

Les Robb for the Employee Groups
Simon Ouellet for the University