Reprinted from Vancouver Sun story written by Neal Hall May, 2003

ROGERS Workers will share $20 million from dissolved retirement plan after landmark court decision

In what is being hailed as a precedent-setting decision, a B.C. Supreme Court judge has granted a petition to terminate a Rogers Communications Inc. pension plan and distribute close to $20 million that had accumulated to 144 members of the original plan.

It marks the first time in Canada that employees have successfully terminated a plan, said Vancouver lawyer John Laxton , who represented the employees along with lawyer Robert Gibbens.

“This case could have far-reaching implications for pension plans across the country,” Laxton said. “As the population ages and baby boomers close in on retirement, the question will arise as to whether employees can access additional pension plan funds.”

The company pension plan, known as the Premier Plan, had been closed to new members since July 1984. It was taken over by Rogers from Premier Communications when Rogers purchased the company in 1980.

The plan contained a clause from 1974 that called for the distribution of the trust funds to members upon termination of the plan.

Rogers previously lost its court battle to keep the plan amalgamated with its other pension plans.

Justice Linda Loo also approved orders sought by pension plan members to remove the pension committee appointed as administrator by Rogers and to appoint a new administrator to oversee the orderly termination of the plan.

The trust funds in the pension plan are to be transferred within 21 days in whatever form they currently exist (stock, bonds or cash).

In 1995, Laxton, Gibbens and lawyer Dwight Harbottle successfully fought a court battle that returned about $60 million in pension funds to roughly 1,200 former Bank of B.C. employees.

The money was retained by the Hong Kong Bank of Canada when it bought the Bank of B.C. in 1986.

A trial judge ruled in 1989 that the Hong Kong Bank was entitled to the surplus but after years of legal proceedings, it was overturned and the money was ordered returned to the employees who had contributed to the pension fund.

In that case, the court approved the payment of $15 million in legal fees to Laxton and Harbottle for their 10-year struggle on behalf of the former employees.