Amendment To Reduce Final Average Benefits Not A Void Amendment

In a recent decision of the Financial Services Tribunal (FST) in Royal Ontario Museum Curatorial Association v. Ontario (Superintendent of Financial Services) , the FST held that an amendment to an earnings-based defined benefit pension plan (which changed the earnings component of the benefit formula from a final 3 year average earnings to final 5 year average earnings), was not a void amendment under subsection 14(1) of the Pension Benefits Act (Ontario) (PBA).  This decision will be welcomed by sponsors of Ontario-registered pension plans as it provides support for the proposition that the 2010 decision of the Alberta Court of Appeal in Haliburton Group Canada Inc. v. Alberta, does not have broad application to plans registered in Ontario.