In our most
recent blog post, we discussed some of the risks for directors,
officers and other stakeholders in the administration of a
registered pension plan. In this blog post, we focus on the risks
to sponsors and administrators of registered pension plans.
Legal Risks
An organization that sponsors and administers a registered
pension plan has duties under both legislation and the common law.
A breach of any of those duties can result in legal liability.
Statutory Risks
Under pension standards legislation, the sponsor and
administrator have a number of duties. For example, among other
duties, under the Pension Benefits Act (Ontario)
("OPBA"), the administrator has a duty to act with a
certain standard of care, a duty to provide information to members
and other persons, and a duty to submit employer and member
contributions within the time prescribed under the legislation.
