Pension fund move legal, court rules

A court ruling issued Thursday may please some former workers at a defunct New Brunswick mill but it's angered the rest.

Government legislation that changed the distribution of the workers' pension fund is legal, Justice Paulette Garnett ruled.

When the St. Anne-Nackawic mill closed in September 2004, a shortfall in the fund meant those over 55 would get some benefits, but those under that age would leave empty-handed.

The provincial governmentsubsequently passed legislation that divided the fund so that all workers would receive something.

Those over 55, such as Craig Melanson, had argued that the government had no right to change the rules, and thatthe legislationviolated their Charter rights.

Melanson said Thursday the government's action was unfair.

"We asked them to change some of the laws to stop Mr. [George] Landegger from taking his money out, and they said they couldn't change the law," Melanson said.

"But, when it came to the pensioners, they said: 'Well, we're gonna change the law.' So we just don't see the rationale," Melanson said.

Landegger is chairman and CEO of Parsons and Whittemore of Rye Brook, N.Y., the holding company that owned the mill.

Melanson said he hopes Thursday's ruling will bring together all of the mill's former employees, regardless of age, for the next court challenge concerning the pension.

When it gets to court, the workers will argue that the government did not monitor the mill's pension plan properly, and sothe provinceshould be ordered to make up the $25-million shortfall.