OPSEU Local 330 – Distribution of surplus and demutualization
October 15, 2012
Distribution of surplus
We are happy to confirm that over 1,070 cheques have been issued to current and former members of OPSEU Local 330 who participated in the Simcoe County District School Board Insurance Trust between January 1, 1977 and September 30, 2006 by NPT+Ricepoint Class Action Services Inc. earlier this year.
OPSEU continues to attempt to ensure that anyone who should receive an application package gets one. If you have not yet provided your contact information, please visit the website specifically set up for this distribution at: www.opseulocal330benefitsurplus.com. You will be able to provide your current mailing address. You can also contact NPT+Ricepoint Class Action Services Inc. by phone at 1-866-432-5534 or email at email@example.com.
There are just over 400 eligible people that OPSEU is still attempting to locate. If you know of anyone who is a former OPSEU member at the Simcoe County District School Board who may have participated in the Insurance Trust please contact them. If they are unaware of the surplus distribution and feel they are eligible, ask them to contact NPT+Ricepoint Class Action Services Inc. at the above noted addresses or phone number.
We are still awaiting word from Canada Revenue Agency regarding the tax status of these payments. If these funds are considered taxable, anyone receiving a payment will also be provided with the appropriate tax slip for reporting to the Canada Revenue Agency by NPT RicePoint Class Action Services.
As you may be aware, there were two pools of money that needed to be dealt with as a result of the termination of the Insurance Trust. One allocation was the surplus in the Insurance Trust which is addressed above. This was the largest pool of money.
The other is the proceeds that the Insurance Trust obtained as a result of demutualization. This issue is being dealt with separate and apart from the distribution of all other assets of the plan.
Currently, demutualization proceeds are still under the care and control of the Administrative Trustees and are expected to be dealt with by the courts this fall. OPSEU’s share is approximately $600,000 minus any legal and other administrative expenses payable.
After the courts have approved the method of distribution of the demutualization proceeds, including the distribution protocol, the list of eligible former and current OPSEU members will be provided to the claims administrator (NPT RicePoint Class Action Services). They will ensure that the proper information is obtained and the proper payments are made on a timely and efficient basis.
The specifics of how amounts will be calculated are not fully finalized; nor are they approved by the courts. We can tell you generally that in order to be eligible for ANY payment of demutualization proceeds you will have to have been participating in the Insurance Trust for Simcoe County District School Board through the period between January 1, 1988 and December 27, 1997.
The proposed distribution contemplates individual entitlements being calculated based on the levels of coverage individual Covered Employees had during that time period. The amount of the payment receivable will generally be dependent upon how long an OPSEU member participated in the group benefits plan during the period, and how many benefits they participated in under the plan (Life Insurance, AD&D, Health, Dental and Long Term Disability). The longer the participation and the more benefits participated in, the larger the payment amount.
We will keep you posted as things progress through the fall and into 2013.