Can Plan Expenses Be Paid from the Fund?

Originally published in The Lawyers Weekly, March 24, 2006.

The increasing cost of pension plan administration has more employers asking whether pension plan expenses may be paid from the pension fund. The answer remains unclear, despite several high profile court cases such as Kerry (Canada) Inc. v. Ontario (Superintendent of Financial Services) 41 C.C.P.B. 65 (F.S. Trib. Mar 04, 2004).

Two related principles may be distilled from the Ontario Pensions Benefits Act (PBA) and Financial Services Commission of Ontario policy. First, expenses related to the administration of the fund may be paid from the fund. Second, expenses under statute or that are for the benefit of the employer are clearly the employer’s responsibility.