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The settlement
between the Association for Pension Enhancement at Royal Trust (APERT),
an association of Royal Trust pension plan members and the Royal
Bank of Canada has been approved by the Ontario Superior Court and
Quebec Superior Court. The settlement is valued at approximately $51
million dollars.
The class action
suit originated in 1996 when several Royal Trust pension plan
members retained Cohen Highley LLP to obtain a preliminary opinion
on their entitlement to a substantial surplus in the plan.
John Burleton,
Chairman of APERT’s Negotiating Executive Committee, is delighted
with the Judgment and resulting benefits to members and their
families. “Cohen Highley brought together the concerns of our
members in a collective and effective way. The APERT members’
support of and participation in this class action to resolve these
issues and find a solution has clearly paid dividends today.”
As part of the
negotiated settlement, some members of the Royal Trust plan were
offered pension improvements and, in most cases, cash payments. As
well, Royal Bank’s right to continue certain administrative
practices with respect to expenses and calculation of employer
contributions has been confirmed. While there is no admission of
fault by Royal Bank either for its own actions or the actions of
Royal Trust, the settlement resolves several long standing disputes
to the mutual benefit of all parties. “This settlement has clarified
the rights of all parties going forward so we can avoid further
misunderstandings,” said Gary Dobbie, senior vice-president,
Compensation & Benefits. “We are pleased that we were able to work
cooperatively with all stakeholders to find a settlement that is
fair for all parties.”
The settlement is
applicable only to the Royal Trust pension plan and does not involve
any other pension plans of Royal Bank or its affiliates. The
settlement is still subject to a number of conditions being
satisfied, including regulatory approval.
For more information contact:
RBC Financial Group, Corporate
Communications, 1-800-545-2555
or the APERT Clerk at Cohen Highley LLP at 519-672-9330 |
