Court Finds Former Auditor General of Manitoba Overstepped his Authority

WINNIPEG, Jan. 21 /CNW/ - In a historic decision rendered on January 19, 2010, the Court of Queen's Bench of Manitoba ruled in favour of the members of the MTS Allstream Inc. ("MTS") Pension Plan by requiring MTS to return to the plaintiffs $43.343 million plus interest ($100m) and that the plan members would have control (governance) over how these funds would be utilized.

After a 13-year struggle emanating from the legacy of a decision of the then Auditor General of Manitoba, Jon Singleton, and his appointed "independent actuary" Clifford Fox, the Court found that Mr. Singleton overstepped his authority by interfering in the deliberations and findings of Mr. Fox, who ultimately determined that the plans were equivalent.

Mr. Fox's tampered ruling caused the subsequent 10-year court battle on behalf of the plan members and retirees.

Telecommunications Employees Association of Manitoba Inc. (TEAM-IFPTE Local 161) President Misty-Hughes-Newman is very pleased with Court of Queen's Bench decision. It vindicates the rightful claim of the members to the initial surplus which has been denied them for many years, and supports the plan members' contention that Fox's March 5, 1997 opinion of equivalency is invalid.

"I am delighted with the result," said retiring TEAM-IFPTE Local 161 member Jo-Anne Pelzer, "It's good to know my union's looking out for me."

Lawyers for the plaintiffs TEAM, IBEW and the retirees, Brian Meronek, Q.C. and Kris Saxberg of D'Arcy & Deacon, said that this decision represents one of the highest judgment amounts ever awarded by a Manitoba Court.

TEAM-IFPTE Local 161 represents approximately 1200 managers and technical staff at MTS Allstream Inc. in Manitoba

SOURCE TELECOMMUNICATIONS EMPLOYEES ASSOCIATION OF MANITOBA (TEAM), IFPTE L161

For further information: For further information: or further comment contact TEAM Spokesperson Kris Saxberg, (204) 330-6423

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TELECOMMUNICATIONS EMPLOYEES ASSOCIATION OF MANITOBA (TEAM), IFPTE L161

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