Is a member of a pension plan entitled to distribution of surplus funds from a partial termination of the pension plan?
Ontario, Canada
The following excerpt is from Lacroix v. Canada Mortgage and Housing Corporation, 2009 CanLII 2323 (ON SC):
My analysis starts from the position that it is well settled law that a member of a pension plan is not entitled to distribution of surplus until the plan is terminated or partially terminated. Until termination, a surplus in a plan is a contingent unquantifiable interest: see Schmidt v. Air Products Ltd. [1994] 25 SCR 611. In order to succeed the plaintiffs will have to establish that the defendants had a duty to declare a partial termination and that the failure to do so caused them to suffer a loss. That loss will have to be calculated on the basis of the actual value of the surplus at the effective termination date and a determination of what portion of that value is related to the group being terminated.
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