| DIPAC Letter on Solvency Relief |
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The following letter is being sent to all Members and Non-members (ie INVISTA/DuPont pensioners) of DIPAC via email, regular mail, and this web site posting as appropriate to the contact information we have in our files. Please read on....
DuPont/INVISTA Pensioners Association - Canada2010 October 15
Dear INVISTA Canada pensioner,
You are recently in receipt of a letter from INVISTA Canada in which it is exercising its legal right to apply to the Ontario government for solvency relief in regard to our pension fund.
You are aware of the global equity downturn over the last couple of years and, like all other investments, our pension fund has taken a major hit. The result is that our pension is now 35% underfunded ($238 million). This requires correction over time by our plan sponsor INVISTA Canada . The legislative options available to the company are to correct this deficiency over a five or ten year period.
In order for the ten year time frame scenario not to proceed, one third of the roughly 4500 plan members need to signal their objection via the letter you received recently. No response indicates support for the ten year time frame proposal. The ten year scenario comes with the commitment of annual progress reports and a corporate guarantee from the parent company INIVSTA B.V.,(also a private company) should INVISTA Canada in the future be unable to meet its financial contribution obligations to our pension fund. The five year proposal comes with no such assurances.
As your DIPAC leadership team, we really wrestled with this issue. We have available to us the same information package that you have received. With this in mind and realizing that there are any number of business scenarios that may or may not occur in the future, we in the final analysis, believe that the ten year scenario is the better direction to take. If you concur, no response is required to the INVISTA letter.
Hopefully this note will be one of the factors you take into account when you exercise your individual decision.
Thank you. Your DIPAC leadership team.
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