A pension cloud hangs over efforts to complete the sale of CHCH by Canwest Global Communications to broadcaster Channel Zero.

Canwest Global said it will wind up the pension fund at the Hamilton, ON station on Aug. 31, when the current broadcast licence lapses, and make no further contributions.

But around 108 retirees at CHCH anticipate that their pensions will be reduced after the windup as Canwest Global has not been fully funding the plan, which in turn has sustained investment losses during the current financial market downturn.

‘Retirees are concerned that the issue of pension plan windup will pit current active employees at CHCH-TV against retired former employees,’ retiree Bob Ireland said in a statement.

Ireland and a group of retirees have approached the federal government to top up the CHCH pension plan after its windup.

‘If Canwest lacks the resources to fund its commitments, then a better solution is to approach the federal government to seek regulatory relief. Regulatory relief would have the benefit of protecting the interests of both active and retired members,’ Ireland said.

The CHCH retirees have also hired Toronto lawyer Hugh O’Reilly at Cavalluzzo Hayes to help them defend their pensions. Further, the Communications, Energy and Paperworkers Union has lodged a complaint against Canwest Global at the Canada Industrial Relations Board to get the broadcaster to make good on pension fund obligations that result from collective bargaining.

Canwest Global spokesman John Douglas said the broadcaster will need to wait until Aug. 31 before it can assess the size of any pension fund shortfall, and its impact on retirees.

Douglas added the pension fund assets will be distributed to the plan members after the windup, enabling them to ‘manage the funds on their own.’

Channel Zero declined comment on the pension fund shortfall as the dispute is between the CHCH retirees and their former employer, Canwest Global.