More Ontario pension turmoil

By Joyce Grant and David Brown
|Canadian HR Reporter|Last Updated: 07/19/2001

An Ontario Court has ruled employers must distribute pension surplus money in the case of partial wind ups.

“The ramifications are very serious. They’re on plan members, employers, plan administrators and pension regulators,” said Priscilla Healy, a principal at consulting firm Towers Perrin. “You’ve got the benefit security of the remaining members affected. The remaining members and the leaving members will have a conflict.”

The decision supports a ruling from the Financial Services Commission of Ontario (FSCO) rejecting a plan for a partial pension wind up proposed by Monsanto Canada Ltd. because there were no provisions to distribute the surplus to members included in the wind up.