Employers: Keep an eye on your pension plans

Objectivity must be exercised by plan administrator and its agents
By Mark Newton
|Canadian Employment Law Today

If you are involved in managing or overseeing a pension plan, the importance of closely supervising your providers cannot be underestimated. The need for objectivity in the administration of a pension plan and in the monitoring of service providers, such as actuaries, is essential. Objectivity must be exercised by both the “administrator” (defined below) and its agents.

The Ontario Court of Justice released its decision in Ontario (Superintendent of Financial Services) v. Norton on Feb. 23, 2007. J. Melvin Norton provided actuarial services to Slater Stainless Corporation for two pension plans. Norton prepared actuarial reports as of Jan. 1, 2002, in May of that year. A year later, in June 2003, Slater filed for creditor protection under the

Companies Creditors Arrangement Act