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ARTICLE · 31 MAY 2011

Employer Denied Second Chance To Challenge Superintendent's Direction

Osler, Hoskin & Harcourt LLP
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The recent Federal Court decision in "Canada (Attorney General) v. Aéroport de Québec inc." will serve as a reminder to employers that there may only be a relatively short window of time to challenge decisions rendered by pension regulators.

CanadaEmployment and HR
Julien Ranger
Julien Ranger
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The recent Federal Court decision in Canada (Attorney General) v. Aéroport de Québec inc. will serve as a reminder to employers that there may only be a relatively short window of time to challenge decisions rendered by pension regulators. Failure to act within that period can prevent an employer from successfully challenging the decision at a later time regardless of the merits of the claim.

This case involves a small federally regulated pension plan sponsored by Aéroport de Québec inc. (the Employer) that was terminated effective October 15, 2008. While examining the wind-up documentation, the Office of the Superintendent of Financial Institutions (OSFI) came to the conclusion that the Employer had failed to exercise an appropriate level of diligence and care in connection with the investment of the plan assets as required by subsections 8(3), 8(4) and 8(4.1) of the Pension Benefits Standards Act, 1985 (the PBSA).

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