The appellants, former employees and beneficiaries of a pension plan, appealed two decisions of the Financial Services Tribunal regarding the employer's handling of the plan.
The Divisional Court held that the employer was not permitted to pay plan administration expenses out of the trust fund, as such amendments constituted an invalid revocation of the trust.
However, the Court upheld the employer's right to take contribution holidays in the defined benefit plan.
The Court also ruled that the employer could not use surplus funds from the defined benefit plan to cross-subsidize its contributions to a newly created defined contribution plan, and that the employer failed to provide proper statutory notice of the plan conversion.
The Tribunal's decision that it lacked jurisdiction to award costs out of the pension fund was upheld.
