This proceeding concerns the right of a pension plan administrator to pay pension plan expenses out of a pension fund, and the right of an employer to use surplus assets in the defined benefit component of a pension plan to fund the employer’s required contributions under a defined contribution component of the pension plan.
In 1985, the employer, Kerry (Canada) Inc., ceased contributing to the Pension Plan for the Employees of Kerry (Canada) Inc. (the “Plan”). From the Plan’s inception until 1984, the Plan’s expenses were paid for by the employer; however, beginning in 1985, third party expenses began to be charged to the Plan. In 2000, the Plan created a defined contribution component. All new employees were required to participate in the defined contribution component.
Members and former members were involved in proceedings before the Financial Services Tribunal of Ontario, and subsequently before the Courts of Ontario and the Supreme Court of Canada, alleging that the payment of Plan expenses out of the pension fund and the contribution holidays taken by the employer were illegal.
Koskie Minsky LLP represented members and former members of the Plan in these proceedings.