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SCC Rejects Plan Member Attempts to Terminate Pension Trust
On June 22, 2006, the Supreme Court of Canada released its decision in Buschau v. Rogers Communications. The SCC held that plan members could not terminate the pension trust through the common law rule in Saunders v. Vautier (1841), and instead held that they must take all pension concerns to the Superintendent of Financial Institutions. Sponsors of federally-regulated pension plans may be somewhat relieved by this decision, as it means that employees cannot join together to force the termination of a pension trust. However, the decision raises questions as to the breadth of the Superintendent’s role, and ultimately may suggest that the Superintendent can consider or declare a plan terminated when an employer takes an extended contribution holiday.
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