Human Resources

Liquidating Trust and Restructuring for Non-bank ABCP

This site was created to provide updates regarding the management of the restructured notes received in exchange for the non-bank Asset Backed Commercial Paper that had been held in the Western Retirement Plans.

July 2017 - Liquidating Trust (LT) units have matured and the fund is closed

During the week of July 17, 2017 Sun Life issued a final letter to Western Pension Plan members who had not actively selected a new investment for their Liquidating Trust (LT) holdings.  The letter informed members that all remaining holdings of LT units were automatically transferred to the Money Market Segregated Fund at June 7, 2017.  The letter to members was the final communication as the fund is now closed.

Beginning Thursday, June 8, 2017, any member whose LT holdings were automatically reallocated to the Money Market fund, gained the ability to select an alternative investment option for their assets.  The Money Market Segregated Fund was selected by Western’s Joint Pension Board to be the default investment fund in the event a member did not make a specific selection for their maturing LT holdings. At the time, the underlying assets of the LT fund had similar risk and reward characteristics as the Money Market Segregated Fund. The default fund is not a recommendation and it remains a member's responsibility to actively select investments and allocate contributions. Members may seek investment support from Sun Life by calling the Sun Life Customer Care Centre at 1-866-733-8612 on business days from 8 am to 8 pm ET.  Investment changes may be made either online in a member Pension Plan account at sunlife.ca/western or by phone with the Sun Life Customer Care Centre.

Notification to members

On April 20, 2017 Sun Life mailed a letter to all Pension Plan members still holding Liquidating Trust (LT) in their pension account to advise them to make an investment change, because, as anticipated, units held in the Liquidating Trust had substantially matured.   Members were given until Monday June 5, 2017 to select another investment for their LT holdings and provided with information on how to make the change online or by phone.  Members were informed that LT holdings not reallocated by Monday, June 5, 2017 at 3 p.m. ET would be automatically be moved to the Money Market Segregated Fund.

Value

In July 2011, the LT value was $77.642 and an estimated “optimistic” Liquidating Trust price at maturity was predicted to be $99.90. As at April 5, 2017, the value was $106.3473.

Archived updates

April 2017 update – Liquidating Trust units have matured – check your investments

Pension Plan members who still hold Liquidating Trust (LT) in their pension account are advised to make an investment change, because, as anticipated, units held in the Liquidating Trust have now substantially matured. As there will be no further gains, beyond what you might achieve in a money market fund, we request that, by Monday June 5, 2017, you login to your Western Pension Plan account at sunlife.ca/western and select another investment for your current LT holdings. LT holdings not reallocated by Monday, June 5, 2017 at 3 p.m. ET will automatically be moved to the Money Market Segregated Fund.

Keep in mind that even if your LT holdings are automatically reallocated to the Money Market Segregated Fund, you can still take action in the future to reallocate to another investment. Anytime after Thursday, June 8, 2017 at 8 a.m. ET, you may select an alternative investment option. Note that your assets from the LT will be frozen from Monday, June 5 at 3 p.m. to Thursday, June 8 at 8 a.m. to process the transfer from Liquidating Trust.

If you currently hold Liquidating Trust units, you will also be contacted by Sun Life to remind you to take steps to reallocate your LT holdings.

How to reallocate your Liquidating Trust assets

As Western Pension Plan services have now fully transitioned to Sun Life Financial, all reallocation of investments are conducted through your new account at Sun Life.  You may reallocate your Liquidating Trust assets through your account online at sunlife.ca/Western, or you may contact the Sun Life Customer Care Centre by calling 1-866-733-8612 any business day between 8 a.m. and 8 p.m. ET, and a Customer Care representative can assist.

If you have not done so, you will need to register for access to your account at Sun Life.

February 2016 update

The Liquidating Trust (LT) is a fund that is held by some members of the Western Pension Plans.  The Liquidating Trust holds the restructured notes that were exchanged for the non-bank asset-backed commercial paper (ABCP) held in five Western Funds (Balanced Income, Balanced Growth, Diversified Equity, U.S. Equity Hedged and U.S. Equity Unhedged). The Fund does not accept any new contributions and members have had the ability to make redemptions since May 2010.

The LT posted a return of 2.16% in 2015, as the underlying assets are getting less risky, which significantly reduces the likelihood of losses between now and maturity in early 2017. Western periodically sells a portion of the securities in the Liquidating Trust to fund members’ redemptions. As of the end of 2015, the Fund’s unit value was $101.197, above its initial level of $100 when non-bank ABCP stopped trading.

September 1, 2011 update

To assist members of the Western Retirement Plan in making decisions about whether to hold or sell units of the Liquidating Trust, we provide the following slide presentation updating the various scenarios regarding the possible price of liquidating trust units at maturity.

Non-Bank ABCP Recovery Scenarios

August 2010 update

Effective on May 31, 2010 redemption restrictions on the UWO Liquidating Trust were lifted and plan members with Liquidating Trust units in their pension accounts can now redeem these units in any month if they wish and re-invest the proceeds into another pension fund.  If you have Liquidating Trust in your pension account you are encouraged to review the information on this site and take a few minutes to review the web based workshop on the UWO Liquidating Trust.

Members are reminded that if they decide to redeem their UWO  Liquidating Trust  holdings and re-invest the proceeds to another fund  they must do this by submitting a completed form by mail or fax to HR Communications. This investment change cannot be done on the online system. Please see the right side of this page for the forms.

Former plan members who have left the University but who had UWO Liquidating Trust units held in the pension plans due to the redemption restrictions having been in place should have received option election packages to enable these remaining assets to be transferred out. If you are a former pension plan member with UWO Liquidating Trust holdings please make sure you return this paperwork to HR Communications.

The investment mandate for the UWO Liquidating Trust

The Joint Pension Board has recently updated the mandate of the UWO Liquidating Trust to enable the fund to re-invest proceeds from the sale of Restructured Notes in a variety of specified fixed income funds available within the retirement plans.

The UWO Liquidating Trust is a fixed income fund which holds the Restructured Notes together with cash received as interest payments from notes and from the sale of Notes. Under the revised mandate cash can be re-invested into other fixed income funds. The cash in the UWO Liquidating Trust can be invested in: the TDF funds, the Greystone Money Market Fund and the Canadian Bond Fund.  The UWO Liquidating Trust cannot purchase more Restructured Notes or hold equities. Under the mandate when the Joint Pension Board deems it prudent and reasonable it may sell Restructured Notes in the UWO Liquidating Trust. Selling some of the Notes may be done to reduce the risk of the portfolio or increase its liquidity, which facilitates paying members who redeem their units of the Fund. The investment objective of the UWO Liquidating Trust is to maximize value of the UWO Liquidating Trust while preserving capital.

Updates on Third Party Investment Information regarding the Restructured Notes

A summary of some selected Third Party Information on the Restructured Notes is available here.

Historical Redemption Restrictions