Farm co-operatives’ pension class action certified

A lawsuit launched on behalf of members of a farm co-operatives pension plan have seen their class action certified.
Ontario Superior Court Justice Warren Winkler certified the suit, which stems from investment losses suffered by the Participating Co-operatives of Ontario Trusteed Pension Plan. The class could include up to 2,300 current and former employees of 25 farm co-operatives in the province.
Defendants in the case are wide-ranging, including the pension plan trustees, the former investment manager and consultant, the actuaries, the former and current custodians of the pension fund and legal counsel for the fund.
According to plaintiffs’ law firm Koskie Minsky says the action alleges negligence and breach of fiduciary duty on the part of the defendants.
The plan was placed into wind-up as of March 31, 2003, with an actuarial valuation putting the wind-up funded ratio at 46.6%-49.8%. A Koskie Minsky release notes members have been informed their accrued benefits will be reduced by this ratio.
Plaintiff’s lawyers point to an internal report by pension regulator the Financial Services Commission of Ontario (FSCO) which they claim “raised serious questions about the plan’s lack of operational policies and procedures in the area of investment policies and practices, particularly in dealings involving derivatives”.