Pensions

This issue is non-trivial.

Supreme Court decision stirs pension debate Terry Pedwell

Ottawa — The Canadian Press
Last updated on Saturday, Aug. 08, 2009 03:43AM EDT

A top labour lawyer is calling for government action to protect pensions after the Supreme Court ruled that a company can move pension plan money.

The court ruled Friday that Kerry Canada Inc. could transfer surplus cash from its defined-benefit pension plan to meet its obligations under a newer defined-contribution plan.

The court also concluded that the food company can pay its pension fund's "reasonable" administration costs from pension money.

The verdict could have implications for other companies that shift money between pension funds.

It also bolsters a call this week by Canada's premiers for a national summit on pensions, said Steven Barrett of the Toronto-based law firm Sack Goldblatt Mitchell.

"If anything, I think it reinforces the call for government and legislative action to enhance the pension plans of workers who are facing retirement with either pension plans that have been seriously eroded over the last year or so or workers who simply have no, or inadequate, pension coverage," said Mr. Barrett, who intervened in the case on behalf of the Canadian Labour Congress.

"[The court] in fact says it is up to legislatures and governments to develop pension plans that protect workers."

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