FAQ FOR

RETIREES CLASS ACTION

1.       What is a class proceeding?

A class proceeding, or a class action, is a lawsuit which provides a means for a large group of people with common legal issues to join together and participate in one large action. Class actions are a relatively efficient and cost-effective way for groups of people with common legal issues to gain access to the legal system and seek justice.

2.       What is this class proceeding about?

A class proceeding was commenced against the Ontario Government on behalf of all persons retiring after August 28, 1974 and eligible to receive retirement benefits from the Ontario Government as set out in the Supplemental Health and Hospital Insurance, Dental and Life Insurance Plan in effect immediately prior to June 1, 2002.

The Statement of Claim alleges that the Ontario Government reduced a number of benefits to the retirees, including dental and medical coverage. It was alleged that the reduction in retiree benefits was contrary to a government promise that your benefits would vest on retirement and could not be reduced or eliminated thereafter.

You were advised that your benefits were being changed in a memorandum which was sent to you by the Ontario government in 2002. To view the memorandum, click here.

3.       What are my benefits and how were they changed?

The benefits you had prior to the changes are outlined in a booklet which should have been provided to you by either the Government or your pension plan. The booklet is entitled “A Guide to your Benefits after Retirement”. The benefits in this booklet were changed as set out in the memorandum sent to you in 2002. Click here to see a copy of the memorandum describing the changes.

          To view a copy of the benefits booklet in effect in 2002, click here.

4.       Has the Ontario government admitted liability?

No. The parties have entered into a settlement without any admission of liability.

5.       Am I a class member?

You are a class member if you were employed by the Ontario Government and you retired after August 28, 1974 and were eligible to receive retirement benefits from the Ontario Government as set out in the Supplemental Health and Hospital Insurance, Dental and Life Insurance Plan in effect immediately prior to June 1, 2002 and if you did not validly opt out of the class proceeding.

If you were mailed a Notice of the Settlement Approval Hearing, then our records do indicate you are a class member. Click here to see a copy of the Notice of the Settlement Approval Hearing.

6.       Did I Opt Out?

A Notice of Certification was sent to all class members during the month of February, 2004, informing them of the certification of the class proceeding. The Notice of Certification also informed class members of their ability to opt-out of the action by filing an Opt Out Coupon by July 14, 2004. If you did not file an Opt Out Coupon in a timely manner, you are still considered to be a class member for the purposes of the settlement of the class proceeding. Notice of the Settlement Approval Hearing was not mailed out to those persons who opted out in a timely manner. Click here to view the Notice of Certification.

7.       Can I Opt Out of the Proceeding Now?

The deadline to opt out of the proceedings was July 14, 2004. It is no longer possible to opt out of the proceeding.

8.       How many class members are there?

A database indicates that there are approximately 50,000 individuals who are class members.

9.       How did the proposed settlement come about?

The Settlement was the result of negotiations between counsel for the class members and Counsel and representatives of the Ontario government.

10.     What are the terms of the proposed Settlement?

The Government has paid a total of twenty million dollars ($20,000,000.00) into a fund that will be used to pay settlement monies to all of the Class Members. The Defendant will also implement all health and dental elements of the OPSEU benefit plan as negotiated between the Management Board Secretariat and OPSEU in June, 2005 that have not yet been implemented. These new benefits are to be implemented as soon as practicable but in any event no later than November 30, 2007, and include a drug card and some improvements to diabetic supplies.

As noted, the Government is extending to class members the benefit of a drug card which will make it easier for class members to access prescription drug coverage.

Details of the settlement benefits can be found in the settlement agreement itself, and are described in the affidavit of Charles M. Wright, which will be filed with the court. Click here to view the Settlement Agreement. Click here to view the Affidavit of Charles M. Wright which explains the Settlement Agreement.

11.     What do I do if I don’t agree with the proposed Settlement?

The settlement is still subject to court approval. As long as you are a class member, you are entitled to object to the settlement at the court approval hearing, which is taking place on September 7, 2006 at 10 a.m. If you intend to object it would be helpful to send written materials outlining your objection to Class Counsel prior to the court hearing. Please do not write or contact the Court directly prior to September 7, 2006.

12.     How do I know if I am part of the proposed settlement?

If you did not opt out (see question #6 above) you are considered part of the settlement. If you did opt out then are not part of the settlement.

13.     If the settlement is approved, what do I have to do in order to obtain my settlement?

You do not have to do anything. If the court approves the settlement, you will receive a direct deposit payment of your portion of the settlement if that is the manner in which you receive your monthly pension payments. Otherwise, a settlement cheque will be mailed out to you.

14.     What compensation will a class member receive under the settlement?

There are over 50,000 members. At this time we are unable to calculate the exact amount that you will receive as payment, however, if the settlement is approved by the Court, we anticipate that the amount will be about $325.00 per Class Member.

15.     Why were my benefits that were taken away not reinstated?

The settlement agreement does not provide for a reinstatement of previous benefits. Courts are often reluctant to force a party to perform a specific obligation, such as the reinstatement of benefits. In this case, some benefits were in fact improved which could complicate such an order by the court. Money damages are more typically given when a lawsuit is successful. However, you are entitled to the new benefits negotiated by OPSEU in 2005, and have not given up your right to any future benefit improvements. Importantly, the proposed Settlement does not detract from and will not affect the benefits you currently receive.

16.     My spouse was a class member but is now deceased. Will I be receiving compensation on his/her behalf?

Yes. The settlement benefit will be paid directly to you and notice of the payment will be sent to the estate of the class member if applicable.

17.     I never used my benefits - will I receive compensation?

Yes. Regardless of whether or not you accessed your benefits, a set amount is being paid to all class members.

18.     I lost more from the benefit changes than the payment I will receive - wilI I get compensated for my total losses?

No. Every class member will receive the same payment. For some people this payment will exceed their losses and for some unfortunately it will not fully compensate their losses. It was not possible to design a settlement which would tailor each class member’s recovery to his or her specific loss. Class Counsel’s consideration of this issue is fully detailed in the affidavit of Charles M. Wright, which has been posted on this website. Click here to view the affidavit.

19.     When should I expect to receive my settlement benefit?

If the court approves the settlement, a direct deposit will be made into your account or a settlement cheque will be mailed directly to you shortly afterwards. We hope to have payment to all class members by the end of this year.

20.     Who are class counsel?

The law firms of Cavalluzzo Hayes Shilton McIntyre & Cornish^LLP (click here to view web site) and Siskind, Cromarty, Ivey & Dowler^LLP (click here to view web site) represented the class in this proceeding.

21.     Who determines how much Class Counsel is being paid?

The Superior Court of Justice determines Class Counsel’s fees. Class Counsel have funded the litigation since it was commenced in 2002. Class Counsel will be requesting slightly less than fifteen percent, or three million dollars ($3,000,000.00), in legal fees for their representation of the class.

22.     How do I contact Class Counsel?

The law firm of Cavalluzzo Hayes Shilton McIntyre & Cornish^LLP can be reached at 1-416-964-1115 ext. 2257 or email iurbanavicius@cavalluzzo.com.

23.     What should I do if I will be moving?

Communications with class members is based on information received from the OPSEU Pension Trust, the Ontario Pension Board and the Ontario Teachers’ Pension Plan. You should make sure that they have any change of address information and/or change of your bank account information to ensure that your settlement payment is made into the correct account or your cheque is mailed to the correct address. For the Ontario Teachers’ Pension Plan contact Class Counsel directly. For the other pension plans, their contact information is as follows:

24.     Are more details available?

Click here to return to the home page, which provides links to various documents relevant to the action.