MTS wins appeal of pension-plan lawsuit
2012-02-13 01:09 ET - News Release
Mr. Pierre Blouin reports
MANITOBA TELECOM SERVICES INC. ANNOUNCES FAVOURABLE COURT OF APPEAL RULING REGARDING PENSION LAWSUIT
The Manitoba Court of Appeal has ruled in Manitoba Telecom Services Inc.'s favour on a lawsuit regarding one of MTS's pension plans in Manitoba. The matters that were subject to this litigation were in respect of events that occurred at the time of MTS's privatization in 1997.
The decision under appeal had been announced by the company on Jan. 19, 2010. At that time, the company indicated that it had received external legal advice confirming that key aspects of the decision were flawed and presented strong grounds for appeal. The Court of Appeal has ruled against the plaintiffs and for the company, and has dismissed all cross-appeals raised by the plaintiffs. The decision of the trial judge that the company may be required to pay additional funds estimated previously of up to $100-million was set aside. As a result, there will be no changes to the company's expected future funding requirements or any other aspects of the MTS pension plan.
"We are pleased that this issue is now resolved, as the judgment affirms what we have said over the past number of years. We look forward to putting this behind us," said Pierre Blouin, MTS Allstream's chief executive officer. "We regret that this process has taken over a decade to resolve and has been very costly for ourselves, our retirees and our unions. Nevertheless, MTS pension plans have always been, and continue to remain strong."
Over the years, the company has remained committed to funding this plan, and contributed and made commitments of approximately $540-million to this MTS pension plan, over $400-million of which has already been paid in cash. Employee contributions over the same period totalled $144-million.
A copy of the of the Court's decision is available on MTS Allstream's website.
We seek Safe Harbor.