ASCR Inc.

Questions & Answers

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ASCR Formation

  • What is ASCR?
     
    ASCR stands for the Association of Store & Catalogue Retirees. It was formed to ensure a dedicated focus to the protection of all benefits and pensions of Sears Canada retirees (and their surviving spouses or dedicated partners) who have retired since April 1999.
     
    For legal reasons we were required to have a name that would not conflict with Sears Canada trademarks or legally registered business names. So officially we are called the Association of Store & Catalogue Retirees. But we refer to ourselves as ASCR whenever possible.
     
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  • Why was ASCR formed?
     
    Much has changed since April 1999. There is no written guarantee of continued benefits for those retiring since this date; there is new Sears management in both Canada and the United States; changes have been announced to our pension plan investment strategy (the way plan funds are invested); changes to provincial and federal pension legislation are being proposed; and there is a worsening economic environment.
     
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  • Who are the people behind ASCR?
     
    A nine member Board of Directors has been established. Its members are:
    • President - Stew MacLeod (retired as Group Vice-President Home and Hardlines)
    • Vice President - Nina MacLaverty (retired as Vice President and General Merchandise Manager, Home and Hardlines.)
    • Secretary - John Pullam (retired as National Manager, Electronic Commerce)
    • Treasurer - Ken Davids (retired as Senior Auditor)
    • Director - Barry Carnegie (retired as Divisional Vice President, Merchandising and Marketing, Home Installed Products and Services)
    • Director - Ana Davies (retired as National Director, Associate Relations)
    • Director - Rob McKenzie (retired as National Manager, Strategic Sourcing)
    • Director - Claude Senechal (retired as President of Cantrex)
    • Director - Rejeanne Steingart (retired as National Manager, Information Technology)

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  • How will ASCR get its operating funds?
     
    ASCR is a not-for-profit organization. It will be funded by an annual membership fee. Additional donations will be accepted and appreciated. As particular initiatives require, additional drives for funds, either voluntary or requested will be considered.
     
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  • What are ASCR’s priorities?
     
    The current priorities are:
    • To communicate with and enroll those who retired from Sears Canada after April, 1999.
    • To have Area Representatives in all regions of Canada.
    • To monitor and review the status of benefits and pensions.
    • To communicate changing pension legislation to ASCR members. 
    • To participate in the Canadian Federation of Pensioners (CFP). CFP is an organization of retiree groups with defined benefit pension plans, who share many of the same issues and beliefs as ASCR. This will give us “strength in numbers” when advocating with government departments and agencies.
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    • Relationship to Sears Retiree Group (SRG)

    • What is the difference between ASCR and SRG?
       
      Both ASCR and SRG are independent organizations of Sears Canada retirees. ASCR is specifically focused on the needs of those who retired after April, 1999.
       
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    • Wouldn't we be better served by having one retiree group?
       
      Having one group would offer us strength in numbers. However the creation of ASCR will allow us to specifically focus our resources and energies on the needs of those who retired after April, 1999. We will endeavour to work with SRG on shared issues. There is no reason why a retiree who wishes to do so cannot join both organizations.
       
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    Relationship to others

    • What will ASCR's relationship to Sears Canada be?
       
      ASCR is an independent organization. It is neither sponsored nor endorsed by Sears Canada. ASCR will establish a working relationship with Sears Canada senior management in order to fulfill its objectives.
       
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    • What will ASCR's relationship to Sears Holdings be?
       
      We do not anticipate the need for any relationship with Sears Holdings at this time.
       
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    • What other relationships do you expect to have?
       
      ASCR is an active member of the Canadian Federation of Pensioners (CFP) and a member of ASCR is also on the Board of Directors of CFP. ASCR pays a membership fee to CFP. This brings us into contact with a number of like-minded retiree groups who are also CFP members. CFP currently represents over 150,000 Canadian pensioners who have defined benefit plans.
       
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    Joining ASCR

    • Why would I want to join ASCR?
       
      If you have any reservations about your Sears Pension Plan or your benefits, ASCR can help. We will:
      • help you keep your benefits,
      • monitor the Benefit Trust,
      • speak for you on benefit matters,
      • protect your pension,
      • speak for you on pension matters, 
      • represent you on pension legislative matters,
      • monitor Sears management of the Pension Plan.

      Sears has a long history of treating its employees with respect and dignity. Given the changing environment of pensions and benefits in Canada, there is good reason to have an informed, committed and proactive association to speak on your behalf.
       
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    • How do I join ASCR?
       
      Go to the ASCR website at www.ascr.ca, click on the “Join” button at the top of the page and follow the instructions
       
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    • Is there a fee to join ASCR? Why?
       
      Currently the membership fee is $15 per annum. We also offer a three year price and a lifetime paid-up membership, and we encourage everyone who can, to provide a donation to help fund our planned activities.
       
      While all ASCR directors and area representatives are volunteers without remuneration of any kind, we do require funds for some of our administration expenses, such as outside legal and accounting costs, printing and mailing, and website hosting. We intend to keep operating costs low by extensive use of volunteers and by communicating with our membership via the Internet wherever possible.
       
      ASCR's only source of income is the membership fees and other voluntary donations that we receive.
       
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    • Will I receive a tax receipt for my fee or donation?
       
      No. While ASCR is registered as a not-for-profit organization, it is not a charitable organization.
       
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    • What benefits will I derive from becoming a member?
       
      Staying informed is vital in today’s climate. We intend to keep you up to date with any changes in legislation, regulation or policy that might be planned or implemented by pension plan sponsors, governments or regulatory bodies that could impact your pension or post-retirement benefits. In conjunction with CFP, we plan to advocate positions with the various levels of government that support our member's needs.
       
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    • Will Sears look down upon me for joining a retiree organization?
       
      Retirees from most major corporations have formed retiree groups with mandates similar to our own—that is to protect the pensions and post-retirement benefits of their members. This is best accomplished by maintaining meaningful relationships with the pension plan sponsor (Sears Canada) while remaining abreast of current retiree issues and concerns. Most plan sponsors welcome the involvement of retiree groups as a way to maintain an ongoing dialogue with retirees and their concerns.
       
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    • How else can I help ASCR?
      • Contact other Sears Canada retirees you know who retired after April 1999 and encourage them to join ASCR too. The more ASCR members, the more influential we can become in our endeavours. Personal contact will be our primary recruitment tool.
      • Join a committee or help with administrative work. We will require volunteers to assist with the creation of newsletters and other communications, to prepare other documents, and to join ad hoc committees. If you are willing to volunteer, please contact any Board member.
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    Retiree Questions, Issues or Concerns

    • Is my pension secure?
       
      The Sears Registered Retirement Plan (SRRP) is funded by Sears Canada Inc. (the Plan Sponsor). The funds in the plan are held in trust at RBC Dexia (the Custodian). Your pension is “safe” as long as the plan sponsor ensures that the SRRP is fully funded and the Company remains viable.
       
      As required by the Ontario Pension & Benefits Act, on September 30, 2011 Sears Canada provided the Financial Services Commission of Ontario (FSCO) an Actuarial Report covering the Pension Plan results as of December 31, 2010 which reported that the Plan was underfunded by approximately 20% on a windup basis.
       
      Sears is now legally obligated to begin making funding payments to return the Plan to the fully funded state. It chose to defer amortizing the accrued liability until December 31, 2011 and will therefore make its initial payments in 2012 and 2013, after which it must file an updated Actuarial Report.

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    • Should I resign before my 55th birthday and withdraw the commuted value of my pension?
       
      Every person's financial situation is different. There are variances in earnings, savings, risk tolerance and a host of other factors which affect this decision. If you are considering this action, we strongly recommend that you contact a professional financial planner to advise you.
       
      While the financial advise you receive may vary, it is our understanding that most such financial advisors have recommended staying in the Sears Registered Retirement Plan and retiring with the defined benefit.
       
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    • I have heard stories about companies and their pension plans falling into financial difficulty. Could our pension plan become one of these?
       
      In the case of defined-benefit pension plans (such as our SRRP) problems of this nature most often arise when the plan sponsor experiences financial difficulties or the Company fails to keep the plan fully funded. If the sponsor is forced to seek bankruptcy protection, and if at that time the pension fund is not fully funded, the pensioners can be adversely affected, losing some of their pension.
       
      As well, Canadian businesses are lobbying for changes to current defined-benefit pension plan legislation across Canada that could weaken the long term financial security of our pensions.
       
      Working with and through the Canadian Federation of Pensioners (CFP), we are advocating with government departments, commissions and agencies to improve the long-term security of the Sears Canada defined-benefit pension plan by representing the interests of Sears Canada pensioners in the development of improved pension legislation and regulations.
       
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    • If a company is forced to seek bankruptcy protection, and if at the time their pension fund is not fully funded, the pensioners are at risk of losing some of their pension. Is the government required to help the pensioner?
       
      No. However, Ontario has the Pension Benefits Guarantee Fund (PBGF) which is administered by the government but is funded by the pension plan sponsors. It is not a guarantee--if there are not enough funds to cover the pension shortfall, then only partial payments will be made from the PBGF, and if the PBGF is bankrupt, no payments will be made at all. Under extraordinary circumstances, the Lieutenant Governor in Council may authorize the Minister of Finance to make a grant to the PBGF.
       
      It is important to note that the PBGF exists only in Ontario and only applies to those with an employment history in Ontario.
       
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    • Are my benefits secure? How do you envision helping to protect my benefits?
       
      The discount, medical, dental and life insurance benefits that you receive in retirement are usually referred to as “other post-retirement benefits”. These benefits are funded by Sears Canada, and the level of benefits you receive depends in part on when you retired.
       
      (a) For those who retired from Sears Canada before March 1999, Sears has committed in writing that it will continue to provide benefits for those retirees, and their designated dependants, for their lifetimes, at no less than the levels of support that were in effect as of January 1, 1996.
       
      (b) On February 5, 2007, Sears Canada announced that the company will no longer provide medical, dental & life insurance benefits at retirement for employees who have not achieved certain eligibility criteria for these post-retirement benefits as at December 31, 2008.
       
      (c) Those of us who retired between these two events were given a “Statement of Retiree Benefits” document as part of our retirement package which included a footnote that read “While Sears Canada Inc. expects to continue to offer Retirement Benefits indefinitely, future conditions, including changes to provincial government health benefit plans cannot be foreseen. Sears Canada Inc. reserves the right to modify, suspend or cancel the plan at any time”.
       
      We believe that a retiree from Sears Canada Inc. and his or her designated dependants should continue to receive for their lifetimes those post-retirement benefits to which they were entitled as of the day of their retirement. Sears has already committed to this for those who retired before March, 1999.
       
      To date, Sears Canada has shown no intent to reduce or eliminate benefits for those who retired per (c) above, and we are optimistic that nothing will change – however, it is on this point that we must remain attentive and informed.
       
      We will act to protect these benefits by establishing a professional working relationship with Sears Canada senior management and lobbying to improve post-retirement benefit legislation through CFP.
       
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    • How can I stay abreast of the laws and issues that affect my pension and benefits?
       
      Most of the changes in legislation and the legal rulings that affect us are reported in the news. We will do our best to interpret what is happening and share it with our members.
       
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    • Will you help me resolve a pension or benefits problem I'm having with Sears?
       
      ASCR is not a part of Sears Canada. You should contact Sears Canada's Human Resources Department directly with questions or problems about the administration of your individual pension or benefit plans. However, ASCR will advocate on members' behalf on those issues that affect a significant number of its members.
       
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    • Can pensioners take advantage from splitting pension income in the preparation of income tax reporting?
       
      Yes. Pension income splitting is available to all those applicable without regard to age.
       
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