Often so-called single-employer pension plans will have multiple related employers participating in the pension plan. There has been legal uncertainty in the past regarding whether such related participating employers are jointly and severally liable for pension funding or only liable in respect of each employers own employees. The prior uncertainty resulted primarily from the broad […]
As anticipated, the 2009 Ontario Budget, entitled “Confronting the Challenge: Building Our Economic Future,” contained several measures directed at pension reform. The Budget indicates that the Ontario government is committed to introducing a package of pension reforms in the autumn of 2009. This is welcome news in the pension industry. Solvency Relief Measures Further details […]
Earlier this year, the Chief Justice of the Ontario Court of Appeal, Justice Winkler, released the unanimous decision of Wronko v. Western Inventory Service Ltd. (Wronko), a case that may cause some employers concern on the employment law front. Specifically, employers are now wondering if an employer, on reasonable notice to the employee, has the […]
In certain circumstances, the Superintendent of Financial Services has the authority under Ontario’s governing pension statute to order a partial plan wind-up. One of those circumstances is if a significant number of members of a pension plan lose their jobs as a result of a business reorganization of their employer. A recent case decided by […]
A recent decision of the Ontario Court of Appeal serves as a reminder that directors and officers may have different duties and obligations depending on the role they are fulfilling. The case involves an ongoing action in respect of Slater Steel’s underfunded pension plans that has been brought against an actuary and an actuarial firm. […]
When a purchaser buys the shares of a business the purchaser takes not only the assets but the liabilities as well, as there is no change in the corporate structure, only a change in share ownership. Often corporate transactions are structured so that the purchaser only acquires the assets of the business so that liability […]
Some employers have recently taken a much closer look at their practice of providing almost automatic consent to an employee wishing to take early retirement under the company’s pension plan now that they will be facing worker shortages when baby boomers retire. Many such early retirement provisions are structured so that when a plan member […]
On November 20, 2007, the decision of Justice de Lotbinière Panet of the Ontario Superior Court of Justice in Professional Institute of the Public Service of Canada et al. v. Attorney General of Canada was released. This case involved a claim by certain government employees with respect to surplus in their pension plans. However, it […]
Under pension standards legislation, there is generally the requirement that funds in a registered pension plan may only be paid out in the form of a pension. That is, the entire lump sum may not be withdrawn by the plan member. This may be contrasted with savings in a registered retirement savings plan—in these plans, […]
A pension plan’s registered tax status can be revoked if the plan fails to satisfy the “primary purpose” test under the tax rules–which is certainly something no plan sponsor or beneficiary would want. While pension plans must be registered under applicable provincial or federal pension benefits standards legislation, they must also be registered under the […]