The Association of Canadian Pension Management plans to seek permission to intervene in the Kerry case because it says the issues raised in the appeal are of significant importance to occupational pension plans across the country.
In January, the Supreme Court of Canada announced that it would hear an appeal in the case. A hearing date has been tentatively scheduled for Nov. 18, 2008.
Last June, the Ontario Court of Appeal concluded that plan expenses could be paid from the pension fund in the absence of an explicit prohibition in the plan documents preventing such payment and also condoned contribution holidays taken in respect of a defined benefit/defined contribution arrangement.
“The Court of Appeal decision was logical and well-reasoned. Moreover, it provided much needed clarity to plan sponsors and administrators facing similar funding and administration issues,” says Scott Perkin, president of the ACPM. “The ACPM will argue that the SCC ought to affirm the reasoning and result reached by the Ontario Court of Appeal.”
For some background on the case, click here to visit our special online section, The Kerry Case.
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