Does the common law rule in Saunders v Vautier apply to pension plans?

In deciding that the rule in Saunders v. Vautier does not apply, the court relied on several factors. Pension plans are heavily regulated. The pension benefits legislation regulates the termination of a plan and the distribution of fund assets. Secondly, the trust agreement and the terms of the pension plan are indissociable. The trust could not be collapsed without regard to the terms of the pension plan. In short, termination of the plan in accordance with the legislation is a condition precedent to distribution. Thirdly, under the statutory regime, employers have a different status. Normally, employers have the right not to have their management decisions disturbed in contrast to the common law of trust which allows no room for the settlor's interest. Fourthly, pension trust funds are not gratuitous and the distribution of the capital of the pension fund defeats the social purpose of preserving the financial security of employees in their retirement. Deschamps J. concluded on this point as follows at para. 33: The conclusion that the common law rule does not generally apply to traditional pension funds is reinforced by the fact that the PBSA provides mechanisms that protect members from inappropriate conduct by plan administrators.