Laurentian University staff and faculty to receive $3M settlement over mismanaged retirement health benefits

Current and former members of Laurentian University’s staff and faculty unions will receive cheques in the new year after paying into a retiree health benefits plan that the university spent on its operational and capital budgets instead.

The money meant for the retiree health benefits plan was mismanaged during Laurentian’s insolvency from 2021 to 2022.

Chief Justice Geoffrey Morawetz ordered Laurentian’s insurer, the Canadian Universities Reciprocal Insurance Exchange, to pay a $3 million settlement to the current and former staff and faculty members who paid into the retiree health benefits plan.

“This is us trying to hold people accountable,” said Tom Fenske, president of the Laurentian University Staff Union.

Union members who paid into the benefit plan from 1998 to 2020 will receive 175 per cent of what they contributed into it.

Fenske said more than 300 of his members will receive payments from the settlement in the new year. Those amounts will vary based on the number of years a person contributed to the plan and what tier they chose while they were paying into it.

Fabrice Colin, president of the Laurentian University Faculty Association, said he and his members are happy with the outcome of the settlement.

Around 550 of his members are due to receive payments for their contributions.

While the court order includes a 30-day appeal period, Colin said no objections were made ahead of the hearing.

The appeal period could allow for some people not included in the settlement, however, to make their case for inclusion.

Colin noted the settlement is separate from other claims, such as those made by Laurentian’s creditors, related to the university’s insolvency.