The Financial Services Commission of Ontario has appointed Morneau Shepell Ltd. to take over the continuing administration of Stelco Inc.’s five existing defined benefit pension plans as of Jan. 1, 2018.

The five pensions plans will continue without any disruption to retirees’ monthly payments, according to a news release, which noted Morneau Shepell would contact all plan members in the new year.

Read: Salaried employees, retirees approve Stelco’s restructuring plan

The release noted the appointment is a further step in Stelco’s successful restructuring under the Companies’ Creditors Arrangement Act. At the end of April 2017, the majority of salaried retirees and employees, along with unsecured creditors, voted in favour of Stelco’s restructuring plan. Other creditors, including the Ontario government, also approved the restructuring.

The five plans will continue to pay benefits for service accrued up to Dec. 31, 2017. Members of the plans who are part of the United Steelworkers union will continue to accrue benefits after 2017 under new defined benefit arrangements administered by Stelco, All other employees will be eligible to participate in Stelco’s group registered retirement savings plan.

Read: Stelco looks to inject funds into pension, retiree benefits through IPO

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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