Pension plan administrators have no duty to disclose potential benefit enhancements that are merely under consideration.
The plaintiffs resigned from their employment and withdrew the commuted values of their pensions from the OMERS pension plan.
Shortly after, the plan was amended to provide benefit enhancements from surplus funds.
The plaintiffs sued the plan administrator for negligent misrepresentation and breach of fiduciary duty, alleging it failed to inform them that benefit enhancements were under consideration.
The trial judge found the administrator liable.
The Court of Appeal allowed the administrator's appeal, holding that a pension plan administrator does not have a duty to disclose potential plan changes that are merely under consideration, as such information is speculative and not highly relevant or material.
Hembruff v. Ontario Municipal Employees Retirement Board, 2005 ONCA 39859