Some 1,200 employees and retirees of Co-op Atlantic are facing a 30% reduction in their pension.
According to pension administrator Eckler, which was appointed after Co-op Atlantic filed for creditor protection last year, the 30% reduction may be necessary based on the plan’s funding level as estimated at June 20, 2015.
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Eckler is in the process of updating the estimated funding level at December 31, 2015, and said the estimated reduction may change once that is finalized.
The New Brunswick Superintendent of Pensions ordered a full wind-up of the plan, at December 31, 2015. The wind-up includes all members, former members and any others entitled to benefits under the plan.
Eckler does not expect the wind-up report to be filed before June 2016.