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Member, Beacon International Group, Ltd.
OTTAWAThe Supreme Court of Canada declined to hear the appeal of an Ontario Court of Appeal decision that removed a major obligation imposed on pension plan administrators to disclose any plan changes under consideration.
In Hembruff vs. Ontario Municipal Employees Retirement Board, the Ontario Court of Appeal had ruled that the plan administrator had no duty to advise plan members that it was contemplating making benefit improvements to the pension plan, overturning a lower court decision (BI, Nov. 14, 2005).
Canadian pension experts expressed relief regarding the Court of Appeal decision, saying the trial court ruling would have created an onerous mandate for pension plan administrators because they would have been required to inform members of any potential changes under consideration.
The Supreme Court of Canada's decision means the Court of Appeal's decision in the case stands.