Corportate Digest @ Gowlings - January, 2006

Edited by Mr Rod Seyffert

On November 1, 2005 the Ontario Court of Appeal released its decision in Hembruff v. Ontario Municipal Employees Retirement Board. The key issue for the Court to decide was whether the administrator of a pension plan has a duty to advise plan members that it is contemplating making benefit improvements to the plan. In summary, the Court held that a pension plan does not have a duty to advise plan members that it is contemplating benefit improvements during the period while such changes are under consideration. This is a welcomed decision by plan administrators, who until this decision faced considerable uncertainty as to their disclosure obligations to members.