Background:

• Class Action: Certified for members of the Brewers Retail Inc. Pension Plan for Salaried Employees.
• Issue: Non-payment of pension indexing benefits dating back to 1974.
• Initial Ruling: Certified in 2022, opposed by FSRA, which was dismissed.

Settlement Details:

• Plan Interpretation: Dispute on whether indexing is a protected "pension benefit."
• Settlement Agreement: Adjustments of 0.9% per year since January 1, 2016, for pre-2010 service.
• Group Classifications:
  • Group 1: Active employees as of January 1, 2016.
  • Group 2: Former participants prior to 2013 with no ongoing benefits, need to claim.
  • Group 3 & 4: Deferred pensions and survivor benefits.
  • Group 5: Beneficiaries of Groups 1, 3, or 4.

Financial Implications:

• Group 2 Fund: $800,000 for claims, max $2,500 per claimant.
• Valuation: Estimated value of the settlement is $11.49 million (43.8%-55.6% of full indexing value).

Approval:

• Reasonableness: Settlement is within the zone of reasonableness, considering the "all or nothing" nature of litigation.
• Regulatory Approval: Settlement approved by Ontario's pension regulator.

Class Counsel Fees:

• Negotiation Duration: 5 years.
• Fees & Disbursements: $908,500, significantly less than the total time value ($1,183,400).
• Objector's Concern: Fees should be paid by BRI shareholders, not from the Plan. However, the court found fees payable from the Plan to be proper.

Conclusion:

• Approval Granted: Settlement and Class counsel fees approved, concluding the class action.