Settling Class Actions - Some Strategic Issues For Pension Plan Sponsors And Administrators

This article was originally published in Blakes Bulletin on Pension & Benefits - January 2004

Since the late 1990s, there has been a significant increase in the number of "class actions" in respect of pension and benefit plans. This trend is attributable to the nature of many pension and benefit claims, increasing sophistication of plan members and their counsel with respect to the claims that may be raised with respect to plans and the possibility of significant financial rewards for successful plaintiffs and their lawyers. This article focuses on class actions under Ontario law, but the principles discussed will generally be applicable to class actions in other Canadian jurisdictions.

Mr. Justice Warren Winkler, in a recent paper entitled "Pensions, Benefits and the Canadian Class Action Experience", noted that: "pension and benefit matters are generally well-suited to be handled as class actions … As counsel and the courts gain experience in this area, it appears that pension and