Toronto-based human resources and technology company Morneau Shepell
has been appointed administrator of Sears Canada Inc. Registered Retirement Plan, the Financial Services Commission of Ontario announced last week.
Morneau Shepell was selected through a competitive tendering process.
Earlier this month the Ontario Superior Court of Justice made the liquidation sale approval, and the Superintendent determined the Sears plan will need to be wound up.
The details and date of the windup are still to be determined.
“Sears welcomes the appointment of Morneau Shepell, with whom the company is working closely to ensure a smooth transition of plan administration so that there is minimal impact on plan members,” said Sears Canada in a statement.
The Sears Canada pension plan is registered in Ontario because the plurality of its plan members are employed in the province. The Financial Services Commission of Ontario (FSCO) regulates the Sears Canada plan on behalf of pension regulators from other Canadian jurisdictions.
The Pension Benefits Act in Ontario requires that the assets of the Sears plan be maintained separate and apart from the company’s assets. The assets cannot be accessed by the company’s creditors.
Sears Canada operates as a separate entity from its US-based co-founder, Sears Holdings Corp.
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