Petrotrin, Republic in talks on pension plan

Although it will cease operations tomorrow, Petrotrin will continue to exist as a “legal entity" to address all outstanding issues including the Petrotrin Employee Pension Plan (PEPP).

In a media statement yesterday, chairman Wilfred Espinet said the company was in discussions with the plan’s trustees, Republic Bank, to resolve the issue.

However, Congress of the People (COP) political leader Carolyn Seepersad-Bachan has given Petrotrin until today to provide the Mc Kinsey report or face legal action.

She once again reiterated that Petrotrin’s closure would cost some $20 billion.

Meanwhile, Petrotrin stated the PEPP will become a “closed plan” following its cessation of operations tomorrow and has been holding discussions with Republic Bank towards a resolution of all the issues.

Espinet said: “We have been speaking with the trustees (Republic Bank) and we will resolve all of the issues in time. As the sponsors of the plan, we are committed to ensuring that the plan meets its members’ obligations.”

He said the closure of any plan would, inevitably, “raise the question of long-term funding, as there would be no new monies (through employee and sponsor contributions) going into the pension fund.

He said while Petrotrin will cease operations, the company will continue to address legacy issues, including the PEPP.”

Petrotrin is now a wholly owned subsidiary of Trinidad Petroleum Holdings Co Ltd (TPHCL).

Seepersad-Bachan said the pension plan was another indicator that the company’s closure had not been properly thought out by the board of directors.

“Discussions do not solve the problem of funding the deficit and Government will have no choice but to fund that deficit otherwise the trustees will have no other choice, under the rules of the plan but to move forward and liquidate the assets and wind up the plan,” she said.

“Meaning selling off the assets and distributing the money and because the plan is in deficit, retirees will not be getting the foul amount that is due from then plan. They will have to take a reduced lump sum payment and there will be no monthly payments made out of that plan.”

And regarding the McKinsey report, she said a freedom of information request had not yielded any answers saying the company would be given until today to respond or face legal action.