In a class proceeding concerning the ownership of surplus from partial wind-ups of a pension plan and alleged improper administrative expenses, the parties sought approval of a revised settlement agreement after earlier settlement arrangements failed due to significant changes in actuarial surplus estimates.
The motion was brought under s. 29 of the Class Proceedings Act, 1992 for court approval of the amended settlement.
Despite objections from certain class members, the court held the revised agreement was fair, reasonable, and in the best interests of the class when assessed against litigation risks, fluctuating actuarial calculations, and the possibility that the employer might ultimately have been entitled to the surplus.
The settlement substantially increased the guaranteed distribution to class members and included financial concessions from both the defendant and class counsel.
The court approved the amended settlement as falling within the acceptable range of reasonableness for class action settlements.
