Giant fund grows to 91%
Kevin Wilson
Northern News Services
Yellowknife (Feb 02/01) - First it was 75 per cent. Then it was 82. Now, Giant Mine pensioners and widows of deceased pensioners will get 91 per cent of their money.
Morneau Sobeco, the actuarial firm charged with winding down Giant's pension plan after Parent Company Royal Oak Mines went bankrupt says that a combination of prudent investment and "micromanagement" of the fund has improved its financial picture.
Fund administrator Al Kiel, says the while the fund has, "always been in a deficit position, we were able to improve," its situation.
Steve Petersen, plant chair for the Canadian Auto Workers Local 2304, says the new numbers will affect between 60 and 70 retirees, as well as 15 widows.
"It's very good for the widows," says Petersen. Giant Mine employees who elected to take their accrued pension out of the fund will also receive 91 per cent of their entitlement.
Petersen suggests that the improved financial picture for the pension fund opens the door to some other agency covering what is now a reduced unfunded liability.
"At first the shortfall was about $2 million, now if it's only a couple hundred thousand, then someone better top it up."
Kiel says that the likelihood of any new money being found within the existing fund, "is not that high, although I hesitate to say never." Kiel added that his firm has filed an unsecured creditors claim with PricewaterhouseCoopers, Royal Oak's court-appointed receiver.
