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Toronto Transit Commission Class Action Settlement

​​​​​​​​​​​​​​​​​​Intro​du​ction

This website has been established to support a Court-approved notification program providing important information to certain TTC employees and former employees who participated in basic, optional, or supplemental life insurance under one or more of three group life insurance policies (the "Policies") on December 29, 1997. Eligible individuals may be entitled to receive a distribution of "Demutualization Proceeds" as explained in more detail below.

Please visit this Website regularly as it will be updated with news and Court approved documents throughout the administration of the Settlement.

1. Background and Outline of Proposed Distribution

To understand what is going on you will need some basic background facts. Effective December 29, 1997 (the "Demutualization Date"), The Mutual Life Assurance Company—the company that issued the Policies—converted from a mutual insurance company to a demutualized insurance company with share capital in a process called "demutualization". It became Clarica Life Insurance Company. As a participating policyholder, the TTC was issued shares in the demutualized company based on insurance premiums paid under the Policies during the calendar years 1988-1997. Those shares were then sold for cash. That cash, together with related dividends and interest, is referred to as the "Demutualization Proceeds." The Demutualization Proceeds are currently held by the TTC and are invested in interest-bearing instruments pending Court—approved distribution.​

To determine a fair and reasonable method to deal with the Demutualization Proceeds, the TTC commenced an application (the "Court Application") in the Ontario Superior Court of Justice asking the Court to approve distribution of the Demutualization Proceeds according to a Memorandum of Understanding (as amended, the "MOU") negotiated with the TTC's three Unions, and a member Committee struck for the purpose of representing affected unionized employees, non-unionized employees, pensioners, and other former employees in this process. The representatives on the member Committee are Rocco Signorile, Gaetano Franco, Michael Farrell, Pat Daniels, and Paul McLaughlin.

2. Process and Next Steps​

The TTC has engaged the assistance of Deloitte LLP—a third party administrator—to assist with the notification relating to the distribution of the Demutualization Proceeds in accordance with the MOU once Court approval is received. For further background and definitions relating to the Demutualization Proceeds, please refer to the Court orders, Court Application, and other pleadings and main documents filed with the Court under the Documents & Notices section of this website (click here).

In accordance with the Court-approved Notice Program this website was established, and on June 29, 2013, a Notice was published in the Toronto Star and the Globe and Mail. The terms of the proposed distribution were also highlighted in a Letter that has been sent to all current and former employees who were Insured under one or more of the Policies on the Demutualization Date, for whom address information was available in TTC records. The detailed terms of the proposed distribution are outlined in the MOU which can be found by clicking here​. The fact that an employee or former employee has received notice of the proposed distribution does not, by itself, mean that the recipient is eligible for an amount under the proposed distribution. Further action may be required as described below (as provided in the Letter sent to you):

  • Class members who are current employees and current retirees receiving a pension do not need to do anything to confirm their eligibility. If you are eligible under the terms of the MOU, you are entitled to a distribution.

  • Class members who are former employees who do not currently have a TTC pension in pay or persons who are the legal representative of the estate of a deceased employee or retiree who was insured under one or more of the Policies on the Demutualization Date must notify Deloitte LLP as third party administrator, so that their identity and address can be confirmed. Therefore, if you received a Letter indicating that you must confirm your identity and address, or if you are the legal representative of the estate of a deceased employee or retiree who was Insured under one or more of the Policies on the Demutualization Date, or if you are eligible under the terms of the MOU but did not receive a Letter, you need to notify Deloitte LLP as the third party administrator at the address below, so that your identity and address can be confirmed. Any Class member who is not a current TTC employee or a current pensioner, whose identity and address has not been so verified, will not be eligible to participate in the proposed distribution. Accordingly, it is important that Class members (other than current employees or current retirees receiving a pension) or their legal representatives contact Deloitte LLP as soon as possible at:

  • ​Deloitte LLP 
    181 Bay Street, Suite 1400
    Toronto, ON, M5J 2V1
    Email: ttcclassaction@deloitte.ca 
    Phone: 1-866-669-6615​​

​​​​Doc​​uments​​ and Notices

 

Last updated: July 11, 2013

  1. Why did I receive the Letter?
  2. How was a decision reached on the proposed distribution of Demutualization Proceeds? How are the Courts involved?
  3. I didn’t receive a Letter. How do I know if the Notice I saw in the newspaper applies to me?
  4. I am not a current employee or a retiree receiving a pension and I received a Letter asking me to contact Deloitte as third party administrator to confirm my current address. What do I do?
  5. I am not a current employee or a retiree receiving a pension and I did not receive a Letter, but I was insured under one of the Policies on the Demutualization Date. What do I do?
  6. I am a current employee or a current retiree receiving a pension and I was insured under one of the Policies on the Demutualization Date. What do I do?
  7. I was not insured under one of the Policies on December 29, 1997. Why did I receive a copy of the Letter if I am noteligible to share in the distribution of the Demutualization Proceeds?
  8. What does “demutualization” mean?
  9. How have the Demutualization Proceeds been invested?
  10. Where did the money to be distributed come from?
  11. What is the amount of Demutualization Proceeds to be distributed?
  12. Who decided how the Demutualization Funds would be distributed?
  13. Who decided how much money each party would get?
  14. How much is each party receiving?
  15. If I am eligible, how much will I receive from the Court-approved distribution?
  16. What will the TTC do with its share?
  17. I have a question. Who can I contact?
  18. I would like to opt out of the Class proceeding. What do I do?
  19. When will the distribution take place?
  20. Am I entitled to any monies or benefits as a result of the proposed distribution?
  21. Do I have to attend Court on October 22, 2013?
  22. If I want to attend Court on October 22, 2013, what do I need to do?
  23. What if I want to dispute the proposed distribution?
  24. If I attend Court, will my expenses be paid out of the Demutualization Proceeds?
  25. Where can I get copies of the Court documents?
  26. Who is paying for the Court proceedings?
  27. I am the legal representative of the estate of a deceased eligible employee or former employee. What do I do?
  28. What happens if an employee/addressee has died or is incapacitated?
  29. How was it determined that the TTC would get 42% of the proceeds and the employees would get 58%?

 

Why did I receive the Letter? [top]

You received the Letter because TTC records indicate that you are a current or former employee of the TTC who was insured under one or more of three group life insurance policies (the “Policies”) on December 29, 1997. The purpose of the Letter is to advise you that a proposal is being made to distribute the “Demutualization Proceeds” (defined below), and to explain the process to you and others potentially entitled to a share.

Effective December 29, 1997, which is referred to as the “Demutualization Date”, The Mutual Life Assurance Company—the insurance company that issued the Policies— converted from a mutual insurance company to a demutualized insurance company with share capital in a process called “demutualization”. As a result, Mutual Life became Clarica Life Insurance Company.

The TTC was a participating policyholder under the Policies and, for that reason, it was issued shares in the demutualized company. Those shares were then sold for cash. That cash, together with related dividends and interest (approximately $5.5 million), is referred to as the “Demutualization Proceeds”. The Demutualization Proceeds are currently held by the TTC and are invested in interest-bearing instruments.

How was a decision reached on the proposed distribution of Demutualization Proceeds? How are the Courts involved? [top]

The TTC, its Unions, and a Committee made up of representatives from a broad cross-section of employee groups, reached an agreement as to how to distribute the Demutualization Proceeds.

The TTC has commenced an application in the Ontario Superior Court of Justice asking the Court to approve the proposed distribution of the Demutualization Proceeds. The Application has been certified as a class proceeding under the Class Proceedings Act. The TTC is now seeking approval to distribute approximately $5.5 million (net of expenses) pursuant to the terms of a Memorandum of Understanding, which is referred to as the “MOU”.

Under the proposed distribution, the Demutualization Proceeds will be distributed to the TTC and to current and former employees of the TTC who were insured under one or more of three insurance policies on December 29, 1997. Under the proposal, approximately 58% of the Demutualization Proceeds (net of expenses) would be paid to eligible employees and former employees, and the remainder (42%) would be distributed to the TTC.

I didn’t receive a Letter. How do I know if the Notice I saw in the newspaper applies to me? [top]

If you are a current or former employee of the TTC who was insured under one or more of the following insurance policies on December 29, 1997: Basic Life Policy No. 22682, Optional Life Policy No. 22682-A, or Supplemental Life Policy No. 22681; the Notice applies to you, and you are being provided notice of the proposed distribution of the Demutualization Proceeds. You may not have received a Letter because the TTC no longer has your current address.

Effective December 29, 1997, which is referred to as the “Demutualization Date” , The Mutual Life Assurance Company—the insurance company that issued the Policies—converted from a mutual insurance company to a demutualized insurance company with share capital in a process called “demutualization” . As a result, Mutual Life became Clarica Life Insurance Company.

The TTC was a participating policyholder under the Policies and, for that reason, it was issued shares in the demutualized company. Those shares were then sold for cash. That cash, together with related dividends and interest, is referred to as the “Demutualization Proceeds”. The Demutualization Proceeds are currently held by the TTC and are invested only in interest-bearing instruments to maximize protection of the capital, pending distribution.

An application has been commenced asking the Court to approve the proposed distribution of the Demutualization Proceeds.

I am not a current employee or a retiree receiving a pension and I received a Letter asking me to contact Deloitte as third party administrator to confirm my current address. What do I do? [top]

If you are a former employee who does not currently have a TTC pension in pay and you were insured under one of the Policies on the Demutualization Date, the TTC needs to confirm that you have been properly located as required under the MOU. To be eligible for a distribution you must notify Deloitte as third party administrator, so that your identity and address can be confirmed. Otherwise, you will not receive a distribution.

AddressDeloitte LLP 
181 Bay Street, Suite 1400
Toronto, ON, M5J 2V1
Email ttcclassaction@deloitte.ca
Phone 1-866-669-6615

I am not a current employee or a retiree receiving a pension and I did not receive a Letter, but I was insured under one of the Policies on the Demutualization Date. What do I do? [top]

If you are a former employee who does not currently have a TTC pension in pay and you were insured under one of the Policies on the Demutualization Date and didn’t receive a Letter, the TTC may not have your current address on file and needs to confirm that you have been properly located as required under the MOU. To be eligible for a distribution you must notify Deloitte as third party administrator, so that your identity and address can be confirmed. Otherwise you will notreceive a distribution.

AddressDeloitte LLP 
181 Bay Street, Suite 1400
Toronto, ON, M5J 2V1
Email ttcclassaction@deloitte.ca
Phone 1-866-669-6615

I am a current employee or a current retiree receiving a pension and I was insured under one of the Policies on the Demutualization Date. What do I do? [top]

As a current employee or retiree receiving a pension, if you were insured under one of the Policies on the Demutualization Date you should have received a Letter.

If you did receive a Letter - Because the TTC has an accurate, up-to-date record of current employees and retirees receiving a pension, you do not need to do anything to confirm your eligibility. If you are eligible for a distribution under the terms of the MOU, you are entitled to a distribution.

If you did not receive a Letter - Please contact Deloitte as third party administrator so that your identity and address can be confirmed.

AddressDeloitte LLP 
181 Bay Street, Suite 1400
Toronto, ON, M5J 2V1
Email ttcclassaction@deloitte.ca
Phone 1-866-669-6615

I was not insured under one of the Policies on December 29, 1997. Why did I receive a copy of the Letter if I amnot eligible to share in the distribution of the Demutualization Proceeds? [top]

The Letter has been mailed to all individuals who the TTC’s records indicate were insured under one of the three Policies on December 29, 1997, and for whom the TTC has last-known addresses. If you received the Letter and do not meet these criteria, the TTC’s records may have been outdated and the Letter was sent in error.

The Letter was circulated as broadly as reasonably possible to bring the Application to the attention of the largest number of potentially eligible employees. The Letter may have been sent to you to err on the side of inclusion.

In order to clarify your status under the proposal, please contact Deloitte as third party administrator.

AddressDeloitte LLP 
181 Bay Street, Suite 1400
Toronto, ON, M5J 2V1
Email ttcclassaction@deloitte.ca
Phone 1-866-669-6615

What does “demutualization” mean? [top]

Demutualization occurs when an insurance company converts from a mutual insurance company to a corporation with share capital.

A mutual insurance company is one that is owned exclusively by its policyholders.

Mutual Life used to be a “mutual” life insurance company. The holders of “participating” policies had-in addition to the insurance coverage made available through their insurance policies—the right to participate in the profits of the insurer and the right to vote on insurer business. The Policies the TTC held were participating policies.

When Mutual Life “demutualized” and became Clarica Life Insurance Company, it issued Clarica Life shares to all participating policyholders, including the TTC. These shares were a stake in the ownership of the insurance company and could be publicly traded, unlike the rights the TTC previously held in Mutual Life as policyholder. Following demutualization, the TTC eventually sold the shares it was issued for cash. That cash, together with related dividends and interest, is referred to as the “Demutualization Proceeds” and is still held by the TTC awaiting distribution under the proposal once Court approval is obtained.

How have the Demutualization Proceeds been invested? [top]

To maximize protection of the capital, pending distribution, the Demutualization Proceeds are invested only in interest-bearing instruments.

Where did the money to be distributed come from? [top]

In 1999, Mutual Life converted from a mutual insurance company and, as part of that process, issued shares to its participating policyholders. The TTC as a policyholder was issued shares based on insurance premiums paid for insurance benefits coverage under the three Policies during the years 1988-1997. Those shares were then sold for cash. The proceeds are referred to as the “Demutualization Proceeds” and are currently invested only in interest-bearing instruments to maximize protection of the capital, pending distribution.

What is the amount of Demutualization Proceeds to be distributed? [top]

When the demutualization shares were sold in 2004, the proceeds plus related dividends totalled $4,618,246. This amount was invested in interest-bearing instruments and has since grown to approximately $5.5 million as at December 31, 2012. The precise amount available for distribution, net of expenses, will not be known until the October 22, 2013 approval hearing.

The TTC will pay certain costs out of the Demutualization Proceeds prior to the distribution, as contemplated in the MOU setting out the agreed terms of distribution.

These costs include the costs of negotiating the MOU, implementing the Notice Program, and obtaining Court approval. They also include the TTC's and the Committee's legal costs, but they do not include any internal TTC administration costs, other than any out of pocket costs incurred by the TTC in connection with the third party administrator hired to assist with the distribution and with processing the distribution payments or locating affected former employees.

The net Demutualization Proceeds will be distributed to the current and former employees who were insured under one or more of the Policies on the Demutualization Date, and to the TTC, in accordance with the terms of the MOU upon receipt of Court approval.

There are approximately 10,600 eligible persons who may receive a share of proceeds in the event the Court approves the MOU. Under the terms of the MOU, approximately 58% of the Demutualization Proceeds will be shared among eligible employees and former employees, and the remainder (42%) will be distributed to the TTC.

Who decided how the Demutualization Funds would be distributed? [top]

The TTC has an Ancillary Benefits Committee (the “ABC”), which was created to oversee the administration of various ancillary benefit plans. It is made up of representatives of both the TTC and the Unions. At various points following the Demutualization, the ABC considered various alternatives for what to do with the Demutualization Proceeds. Ultimately, it was decided that the TTC should negotiate with a newly established committee (the “Committee”) made up of a representative cross-section of employees and former employees of the TTC, including Union employees. The Committee was struck and has, with the assistance of its own legal counsel, negotiated with the TTC concerning a method to distribute the Proceeds. This negotiation resulted in the MOU which sets out the agreed terms of the proposed distribution, subject to Court approval.

Who decided how much money each party would get?[top]

The proportion of the Demutualization Proceeds to be allocated to the TTC and to eligible employees and former employees under the proposal was agreed upon earlier this year by the parties to the MOU. These proposed allocations reflect the overall respective payments of premiums under the Policies by the TTC and by the eligible individuals who paid premiums between 1988 and 1997.

How much is each party receiving? [top]

The value of the Demutualization Proceeds at the end of 2012 was approximately $5.5 million, but the precise amount available for distribution, net of expenses, will not be known until the October 22, 2013 Court approval hearing.

There are approximately 10,600 eligible persons who may receive a share of proceeds upon approval by the Court of the MOU. Under the terms of the MOU, approximately 58% of the Demutualization Proceeds will be shared among eligible employees and former employees, and the remainder (42%) will be distributed to the TTC.

If I am eligible, how much will I receive from the Court-approved distribution?[top]

The precise amount of Demutualization Proceeds available for distribution, net of expenses, will not be known until the October 22, 2013 Court approval hearing. As a result, the precise share of the total Demutualization Proceeds due to eligible individuals cannot currently be determined. However, it is estimated that the average individual share could be approximately $200, but this is a very rough estimate.

What will the TTC do with its share? [top]

Following the proposed distribution, the TTC is free to use the money it will receive as it deems appropriate.

I have a question. Who can I contact? [top]

If you have questions about the negotiation or the merits of the MOU, contact Class counsel (Koskie Minsky) at 1-855-595-2627 and ttcmembers@kmlaw.ca.

All other questions should be directed to Deloitte as third party administrator;

AddressDeloitte LLP 
181 Bay Street, Suite 1400
Toronto, ON, M5J 2V1
Email ttcclassaction@deloitte.ca
Phone 1-866-669-6615

I would like to opt out of the Class proceeding. What do I do?[top]

If you wish to opt-out of this class proceeding and pursue an individual action, you are entitled to do so. In order to opt-out you must contact Class counsel at the address directly below. You must contact Class counsel in writing-by facsimile or registered mail —before September 3, 2013. After this opt —out period expires, if you are eligible to receive a distribution, you will be bound by the terms of the MOU if it is approved at the October 22, 2013 Court approval hearing.


AddressKoskie Minsky LLP
Attention: James Harnum
20 Queen Street West 
Suite 900
P.O. Box 52
Toronto, ON M5H 3R3
Phone 416-542-6285 or 1-855-595-2627
Facsimile 416-204-2819

When will the distribution take place? [top]

It is not known exactly when the distribution will take place. However, the distribution cannot take place until the Court has approved it, and until all of the expenses relating to the distribution process have been dealt with in accordance with the MOU. The Court will hold a hearing concerning the proposed distribution on October 22, 2013.

Once a Court order approving the proposed distribution has been issued, the TTC can make arrangements for the distribution of the Demutualization Proceeds to the eligible employees and former employees.

Am I entitled to any monies or benefits as a result of the proposed distribution? [top]

The fact that you received the Letter/Notice does not mean that you are eligible for an amount under the proposed distribution. If your Letter indicated that you must take further steps to be eligible for a distribution, then you still must confirm that your address is correct by writing a letter, or an email, to the Deloitte as third party administrator. You may also confirm your address by calling the hotline.

Do I have to attend Court on October 22, 2013? [top]

No, there is no requirement for you to attend Court on October 22, 2013, although you may attend if you wish. If you wish to make submissions at the hearing, it is recommended that you consult with a lawyer.

If I want to attend Court on October 22, 2013, what do I need to do? [top]

The hearing will take place in open court, so if you simply want to watch, you can go to the courthouse at Osgoode Hall, Courtroom 6, 130 Queen Street West, Toronto, Ontario. The hearing is scheduled to begin at 10:00 AM. If you want to make submissions at the hearing you should consult with a lawyer who can file the appropriate Court documents on your behalf and help you at the hearing.

What if I want to dispute the proposed distribution?[top]

The Court is going to hold a hearing to decide whether or not the Demutualization Proceeds should be distributed as proposed. If you want to dispute the proposed distribution, you should make your views known to the TTC and the Court. You should consult with a lawyer who can file the appropriate Court documents on your behalf and help you at the hearing.

If I attend Court, will my expenses be paid out of the Demutualization Proceeds? [top]

You will be responsible for your own expenses, including paying your lawyer. It is possible that the Court could order your costs to be paid from the Demutualization Proceeds, but that is not certain. It would be up to the judge to decide.

Where can I get copies of the Court documents? [top]

The materials filed with the Court can be found on the website at www.ttcclassaction.com. Alternatively, you can contact the hotline at 1-866-669-6615 to request printed copies of the documents be mailed to you.

Who is paying for the Court proceedings? [top]

Subject to Court approval, the TTC’s and the Committee’s costs of the Court proceedings are being paid out of the Demutualization Proceeds prior to the distribution.

I am the legal representative of the estate of a deceased eligible employee or former employee. What do I do?[top]

Where an employee or former employee who was insured under one or more of the Policies on the Demutualization Date has died, the estate of such deceased employee or retiree is considered to be the “eligible employee” or the “eligible retiree”, as the case may be for purposes of the proposed distribution, if such estate is located as described in the MOU. Therefore, such estates are included in the Notice, but must take the steps described below to be eligible for a distribution.

If you are the legal representative of the estate of a deceased eligible employee or former employee, you must notify Deloitte as third party administrator, so that your identity and address can be confirmed.

AddressDeloitte LLP 
181 Bay Street, Suite 1400
Toronto, ON, M5J 2V1
Email ttcclassaction@deloitte.ca
Phone 1-866-669-6615

What happens if an employee/addressee has died or is incapacitated? [top]

The TTC would like to provide the estate or legal guardian with notice of the proposed distribution of the Demutualization Proceeds. If you know the name and address of the executor, administrator, or guardian, please forward the details to Deloitte:

AddressDeloitte LLP 
181 Bay Street, Suite 1400
Toronto, ON, M5J 2V1
Email ttcclassaction@deloitte.ca
Phone 1-866-669-6615

How was it determined that the TTC would get 42% of the proceeds and the employees would get 58%? [to​​p]

The proportionate shares were negotiated by the TTC, the Committee, and the Unions. The result of this negotiation is articulated in full in the Memorandum of Understanding (the “MOU”)​, which is posted on www.ttcclassaction.com under the“Documents & Notices” tab.

In general terms, the proportionate shares are based on the relative contributions to insurance premiums paid by the employees and the TTC.

The TTC was the policyholder of three policies that were subject to the demutualization. The relative contribution to insurance premiums varied under each policy.

The premiums for group life insurance provided by the TTC under the three Policies as at the Demutualization Date were funded as follows:

  1. Basic Life – provided to union and non-union employees and retirees up to age 65; premium payments are shared 50-50 between the TTC and the employees; upon retirement, retirees pay 100% of premiums;
  2. Optional Life – provided to union and non-union employees and retirees up to age 65; premiums payments are 100% employee or retiree paid; and
  3. Supplemental Life – provided to non-union employees only up to age 65; premiums payments are shared 50-50 between the TTC and the employees.

The parties have negotiated for certain expenses to be paid off the top of the Proceeds. Once these expenses are paid, the net Proceeds will be distributed as follows.

First, each eligible employee/retiree would be allocated a portion of the net Proceeds that is proportional to the level of insurance coverage that eligible employee/retiree had under a given Policy on the date his or her last payroll information was processed in December 1997.

Second, to reflect that the TTC funded part of the insurance premiums for most, if not all employees, the TTC will then determine the aggregate TTC distribution share of the net Proceeds and the individual eligible employee/retiree distribution shares of the net Proceeds by dividing the individual’s allocations between the TTC and each such eligible employees/retiree based on the estimated proportion of premiums paid by the TTC and the eligible employees/retirees as of the date of demutualization under each Policy.

This distribution will vary in every case because of the individual factors related to that particular employment relationship (e.g. when the individual was hired, the amount of coverage the individual had, the amount the individual contributed over the relevant period, and the date of retirement (if any).

The 58%/42% split is approximate, estimated with reference to the relative funding of the three Policies on the Demutualization Date. Each individual’s distribution may vary, but the variance will be based on their specific contribution to insurance premiums over the relevant time, and their particular contributions to the funding of their coverage.​


Contact Us​

If you have further questions regarding the administration of the Settlement, please read the FAQ section (click here).

The third party administrator is available via mail, email, or telephone:

AddressDeloitte LLP 
181 Bay Street, Suite 1400
Toronto, ON, M5J 2V1
Email ttcclassaction@deloitte.ca
Phone 1-866-669-6615