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Member, Beacon International Group, Ltd.
OTTAWA--Former employees of food manufacturer Kerry (Canada) Inc. have asked the Supreme Court of Canada to review an appeals court decision allowing the company to pay certain pension plan expenses from plan funds, among other things.
The June decision by the Ontario Court of Appeals was widely held as being favorable to Canadian pension plan sponsors.
The ruling validated an employer's right to make certain decisions about its pension plan, including its ability to pay administrative expenses from the pension fund and to use the surplus in its defined benefit plan to fund its contributions for its defined contribution plan (BI, June 11).
Koskie Minsky, the Toronto-based law firm representing former employees of Woodstock, Ontario-based Kerry (Canada), filed an application last week asking the Supreme Court for permission to appeal the decision.
It will likely take about six to eight months for the Supreme Court to decide whether to allow the appeal, said Ari Kaplan, lead counsel for the former employees.