McCann class action history
This McCann class action was commenced on April 16, 2007. Because most of the issues in both actions were identical, both actions proceeded together through the many Court appearances up to and including the settlement. This McCann class action was certified by the Court on January 23, 2015 by The Honourable Justice Charbonneau, which certification was confirmed on Appeal by the Divisional Court of Ontario dated January 26, 2016. The certification process does not amount to a ruling of the merits on the claim. Click to read the Mediator’s report to the Court, recommending this settlement.
The McCann settlement and who is it for?
The McCann Class Action was settled for $1,252,688.90 (the Settlement Amount). In addition, CMHC will contribute to the cost of administering the settlement, to class counsel’s legal fees, to honorariums for the representative plaintiffs, and to the mediator’s costs in the Lacroix action and the McCann action, to a maximum of $1,180,000.00 for both actions.
McCann class members that are eligible to participate in the settlement include former CMHC plan members whose employment had terminated pursuant to the WFA who elected to receive the commuted value of their pension plan on termination and did not receive the 2nd benefit enhancements, and whose pension was vested at the time of their departure.
McCann class members must meet all of the criteria listed in the table directly below:
- Were vested members of the CMHC pension plan, and;
- Took a Workforce Adjustment package along with the commuted value of pension benefits, and;
- Left the plan other than maintaining a transfer restriction annuity (TRA).
Eligiblity does NOT extend to the following individuals:
- Pension never vested
- Received a refund of contributions
- Resigned, terminated for cause, or otherwise not part of the Workforce Adjustment group
- Left money in the plan
Any former employee who left his or her money in the CMHC pension plan and received the benefit enhancements is not eligible to claim under either class action.
What will eligible McCann class members get?
The Settlement Amount of $1,252,688.90 is for the 2nd benefit enhancement, based on 20.5% of the individual pension contributions plus interest up to the date of the 2nd benefit enhancement, net of TRA, after taking into consideration the risks of proceeding to a common issue trial.
The Settlement Amount will be subject to further adjustments to take into account withholding tax, legal fees as noted above, disbursements, and taxes on fees and disbursements as approved by the Court (Revised Settlement Amount).
Can a McCann class member opt-out of the class action settlement?
The Class Action Administrator will issue a share of the 2nd benefit enhancement settlement as determined by CMHC and approved by the Court to all eligible McCann class members, unless a class member takes action to opt out of the McCann settlement before the Court ordered deadline.
To Opt-Out please download, complete and return the Opt-Out form to the Claims Administrator no later than October 20, 2017. A copy of the Opt-Out form may also be obtained by calling the CMHC Class Action Administrator.
The average payout to each McCann class action member is $6,771.00 less 20% for contingency legal fees to be paid to class action Counsel. The share of any McCann class member who opts out of this settlement, together with the balance of the costs referred to above (less further disbursements) will be added to the $1,252,688.90 to be paid to the class members and divided among all McCann class members on the same proportionate basis related to each members’ pension contributions.