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ARTICLE · 04 AUGUST 2009

Multi-Employer Pension Plans

Borden Ladner Gervais LLP
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It is often assumed that the financial obligation of an employer which participates in a Multi- Employer Pension Plan (“MEPP”) is limited to making contributions at the fixed rate specified in the collective agreement.

CanadaEmployment and HR
Sonia Mak
Sonia Mak
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It is often assumed that the financial obligation of an employer which participates in a Multi-Employer Pension Plan ("MEPP") is limited to making contributions at the fixed rate specified in the collective agreement. To the surprise of some employers, that is not always the case and reality is not as clear-cut as one would expect or like to see.

Employer Beware

The major concern of an employer which participates in a MEPP is its funding obligations which may arise in 3 different situations: when the MEPP is continuing, when the MEPP is wound up and when the employer ceases to participate in the MEPP.

Ongoing MEPP. The Pension Benefits Act (Ontario) (the "Act") and its regulations require employers to make normal cost and solvency contributions when a pension plan is continuing. The only exception is a MEPP where an employer's obligation to contribute is limited to a fixed amount set out in a collective agreement and where the MEPP sets out the obligation of an

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