Can an employer use a pension contribution holiday?
British Columbia, Canada
The following excerpt is from Continental Lime Ltd. v. Canada Trust Co., 1998 CanLII 6691 (BC SC):
The law permits contribution holidays provided that the applicable plan provisions so permit. In Schmidt v. Air Products of Canada Ltd., supra, Cory J. for the majority said, at p.664: All of these cases are perfectly consistent with one another. Together they demonstrate only that whether or not a contribution holiday is permissible must be decided on the basis of the applicable plan provisions. I can see no objection in principle to employers taking contribution holidays when they are permitted to do so by the terms of the pension plan. When permission is not explicitly given in the plan, it may be implied from the wording of the employer's contribution obligation.
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