Miriam Pinkesz  |  September 4, 2020

Category: Canada

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Putting coins in pension jar amid pension plan changes

On Sept. 1, Montreal based law firm Trudel Johnston & Lespérance released a notice to Class Members regarding the authorization of the Kraft Heinz class action lawsuit Canada. The firm is now moving forward with trial preparation. If you worked at Kraft Canada and participated in the Option 2 pension plan and have not received the value of their bridge benefit, you may be eligible to participate in the class action lawsuit Canada.

The Kraft Heinz pension plan class action lawsuit seeks compensation for the bridge benefit that the Class Members lost as a result of Kraft Heinz’s alleged illegal and unilateral amendment of the pension plan.

Lead plaintiff Yvon Milliard commenced the Kraft Heinz pension plan class action lawsuit in November 2018. The action alleges that the defendant, Kraft Heinz Canada ULC (Kraft Heinz), unlawfully failed to pay Class Members the actuarial value of the bridge benefit provided in their pension plan when the company terminated the benefit pension plan.

Yvon has worked at Kraft’s Mount Royal plant of since he was hired in April 1987.

The Kraft Heinz pension plan class action lawsuit explains that in 1988, Kraft introduced a new benefit pension plan which, among other things, introduced a bridging benefit payable to an employee who had reached the age of 55 and elected early retirement. This new pension was labeled “Option 2.”

In November 2013, Kraft allegedly announced that it would replace the benefit pension plan with a contribution plan and that the amendments to the plan will come into effect on Jan. 1, 2024. However, in April 2015, Kraft Heinz changed the date of the pension plan replacement to Jan. 1, 2017. Following the date change, employees were notified that those who had chosen Option 2 will be able to receive the actuarial value of the bridging benefit.

Although receiving the actuarial value of the pension plan doesn’t seem to be problematic, the Kraft Heinz class action lawsuit argues that this payment is not applicable to all employees, many of whom lost money in the process. The class action lawsuit Canada explains that the payments are only made to employees who, as of Jan. 1, 2017 Kraft Heinze diary plantare 55 years of age or older, or are 54 years of age and have at least 35 years of continuous service.

At the time of the cut-off date, Jan. 1, 2017, Yvon was 54 years-old, but only had 29 years of continuous service. Yvon and others in his situation will therefore not receive the actuarial value of the bridging benefit.

According to Yvon, Kraft Heinz arbitrarily “deprived certain employees of the value of the bridge benefit they earned through their employment and paid for in part with their money.” Additionally, the Kraft Heinz pension plan class action lawsuit claims that the pension plan change not only causes Class Members to lose out on their pension plan, but they additionally suffer a significant loss of income “and a serious impact on their retirement planning.”

Yvon argues that the non-payment of the pension plan contravenes Kraft Heinz’s contractual and legal obligations. Whereas Class Members complied with their part of the contract by providing their work performance during their career and paying their share of the contributions to the pension plan, Kraft Heinz did not deliver on its end of the bargain.

Class Members included in the Kraft Heinz pension plan class action lawsuit are non-unionized hourly-paid employees of Kraft Canada Inc. who:

  • Participated in the Option 2 of the pension plan; and
  • Worked at the bulk cheese plant or Mont-Royal plant.

You are automatically included in the Kraft Heinz pension plan class action lawsuit if you are Class Member.

Class Members who do not wish to be bound by the class action must opt-out by Nov. 2, 2020.

Top Class Actions will post class action lawsuit updates as soon as they become available. Click on the “Follow Article” link at the top of this page to get the latest updates about the Kraft Heinz pension plan class action lawsuit by using your free Top Class Actions account. For the latest updates, keep checking ca.TopClassActions.com or sign up for our free newsletter.

What do you think about the Kraft Heinz pension plan change? Do you think Kraft Heinz should pay employees for the money they lost in the pension plan? Tell us what you think in the comments below!

The lead plaintiff and proposed Class Members are represented by Trudel Johnston & Lespérance.

The Kraft Heinz Pension Plan Class Action Lawsuit is Yvon Milliard v. Kraft Heinz Canada ULC, Case No. 500-06-000953-188, in the Superior Court of Québec, District of Montreal, Canada.

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