Loba Limited

On February 2, 2006, Loba Limited (the "Applicant") requested a hearing regarding the Notice of Proposal of the Deputy Superintendent, Pensions, dated January 5, 2006, proposing to make an order, under section 69 of the Pension Benefits Act (the “Act”), that the Pension Plan for Employees of Loba Limited (the “Plan”) be wound up in whole effective May 1, 2005.

The Notice of Proposal indicates that the reason for the proposed order is that there was a cessation or suspension of employer contributions to the pension fund for the Plan within the meaning of s. 69(1)(a) of the Act by virtue of the following circumstances:

• the Canada Revenue Agency had revoked the registration of the Plan under the Income Tax Act (Canada), effective April 1, 2000, for failure to comply with the provisions of that Act and an appeal from that decision had been unsuccessful;
• the Applicant had filed an amendment to the Plan to suspend all member contributions to the Plan, effective May 1, 2005, which amendment was registered on November 1, 2005.

The Notice of Proposal also states that there would be no benefit to members of the Plan in not winding up the Plan and no reason for the Superintendent to refrain from exercising his discretion to order a wind up of the Plan.

A pre-hearing conference was scheduled for April 20, 2006.  On February 24, 2006, the Applicant requested an adjournment of the pre-hearing conference in order to permit the adjudication of the Applicant’s Application to Register a Pension Plan dated December 21, 2005, (the “CRA Application”), filed with the Canada Revenue Agency (the “CRA”).  The Superintendent responded to the request by agreeing to an adjournment only until the earliest of:

1. The date the CRA provides its decision in respect of the CRA Application; and
2. September 14, 2006.

On March 28, 2006, the Tribunal held a discussion with the parties to seek clarification with respect to the Applicant’s request for an adjournment of the pre-hearing conference.  The request was subsequently granted and the pre-hearing conference is now scheduled for June 14, 2006.

Updated to May 31, 2006

At the pre-hearing conference the parties agreed to participate in a settlement conference which is scheduled for August 29, 2006.

Updated to August 21, 2006

On August 28, 2006, the parties requested the settlement conference be adjourned as the matter had been resolved.  The settlement conference was rescheduled to October 3, 2006 pending  finalization of the terms of settlement.  On October 3, 2006, the Request for Hearing was withdrawn by the Applicant as a final settlement had been reached.

Updated to October 6, 2006

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