In a recent class action motion, O’Neill v. General Motors of Canada, the Ontario Superior Court concluded that General Motors of Canada (“GM”) breached its contract with certain non-executive salaried employees when it reduced their post-retirement benefits after they had retired. The Court found that GM had not clearly and unambiguously reserved its right to…
Category: Pension and Benefits
GM Benefits Plan Language Did Not Allow Reduction After Non-Executives’ Retirement; GM Plans Appeal
Justice Belobaba of the Ontario Superior Court of Justice has found that General Motors of Canada (“GMCL”) breached its contract with certain retired non-unionized salaried employees when it reduced their post-retirement health care and life insurance benefits. On this motion for partial summary judgment, the Court held that, in the reservation of rights (“ROR”) clause…
Time Period for Filing Solvency Funding Relief Reports Extended
On June 20, 2013, the Ontario government filed O. Reg. 186/13 amending O. Reg. 177/11 (as amended by O. Reg. 330/12) which amended Regulation 909 (General) made under the Pension Benefits Act. As previously reported, the definition of “solvency concerns” sets out the circumstances under which defined benefit pension plans are required to file annual actuarial…
Supreme Court of Canada Denies Leave to Appeal in Carrigan
Today, the Supreme Court of Canada denied leave to appeal from the Ontario Court of Appeal decision in Carrigan v. Carrigan. The Court of Appeal’s decision awarded the payment of the pre-retirement death benefit payable under an Ontario registered pension plan to a member’s designated beneficiaries rather than to his common law spouse (Ms Quinn),…
SCC to Render Leave to Appeal Decision in Carrigan
On March 28, 2013, the Supreme Court of Canada will render its leave to appeal decision in Quinn v. Carrigan. The majority of the Ontario Court of Appeal awarded the payment of the pre-retirement death benefit payable under an Ontario registered pension plan to a member’s designated beneficiaries rather than to his common law spouse…
Divisional Court Confirms that Section 80(3) of the PBA Deems Employment to Continue Following Sale of Business
In Ontario Pension Board v. Ratansi, the Ontario Divisional Court confirmed that the Pension Benefits Act (“PBA”) deems that following a sale of business transaction, both employment and pension plan membership continue under the predecessor employer’s pension plan while the employee continues in employment with the successor employer. The decision overturns an earlier decision of…
Arbitrator Considers Employer’s Ability to Collectively Bargain Changes to Retiree Benefits
In TRW Canada Ltd. and Thompson Products Employees’ Assn. (Retiree Benefits) (Re), collectively bargained changes to vested retiree benefits were found to have been made without lawful authority. The changes had been proposed by the employees’ association (“Association”), following a particularly hard round of collective bargaining, and after the employer threatened to close one of…
Supreme Court of Canada Renders Decision in Indalex
Today, the Supreme Court of Canada rendered its long-awaited decision in Sun Indalex Finance, LLC v. United Steelworkers. The decision contains important findings with respect to, among other matters, the fiduciary duties of plan administrators, the reach of the statutory deemed trust provisions of the Ontario Pension Benefits Act, and the priority given to pension…
Indalex Pension Decision to be Rendered Friday
On Friday, February 1, 2013, the Supreme Court of Canada will be rendering its decision in Sun Indalex Finance, LLC et al. v. United Steelworkers et al. The appeal relates to an April 2011 decision of the Ontario Court of Appeal which granted “super-priority” to pension funding deficits in a Companies’ Creditors Arrangement Act proceeding….
New Brunswick Introduces Bill to Amend Pension Benefits Act
On December 11, 2012, Bill 20, An Act to Amend the Pension Benefits Act, received First Reading in the Legislative Assembly of New Brunswick. It received Second Reading on December 12, 2012. If passed, Bill 20 will, among other things, amend the Pension Benefits Act (“Act”) to make the following clarifications regarding shared risk pension…