Section 21 of the Pension Benefits Standards Act, 1985 (Canada) – This section outlines the requirements for a pension plan administrator to provide annual statements to plan members, including information on the member’s accrued benefits, contributions, and any other relevant information.

Section 21 of the Pension Benefits Standards Act, 1985 (Canada) is a crucial provision that outlines the requirements for pension plan administrators to provide annual statements to plan members. The purpose of this provision is to ensure that plan members have access to information about their pension benefits, contributions, and other relevant details. In this article, we will examine the facts, relevant laws, key legal issues, and potential outcomes associated with Section 21 of the Pension Benefits Standards Act, 1985 (Canada).

Facts:

The Pension Benefits Standards Act, 1985 (Canada) is a federal law that sets out the minimum standards for pension plans in Canada. Section 21 of this Act requires pension plan administrators to provide annual statements to plan members. These statements must include information about the member’s accrued benefits, contributions, and any other relevant details.

Relevant Laws:

The Pension Benefits Standards Act, 1985 (Canada) is the primary law that governs pension plans in Canada. Other relevant laws include the Income Tax Act (Canada), which provides tax incentives for pension plans, and the Canadian Charter of Rights and Freedoms, which protects individuals’ rights to equal treatment under the law.

How do the laws apply to the facts:

Section 21 of the Pension Benefits Standards Act, 1985 (Canada) applies to all pension plans in Canada. It requires plan administrators to provide annual statements to plan members that include information about their accrued benefits, contributions, and other relevant details. Failure to comply with this requirement can result in penalties and legal action.

Key Legal Issues or Questions:

One key legal issue associated with Section 21 of the Pension Benefits Standards Act, 1985 (Canada) is the interpretation of what constitutes “relevant details” that must be included in the annual statements. Another issue is the potential liability of plan administrators if they fail to provide accurate or complete information in the statements.

Likely Outcome:

The likely outcome of a legal dispute related to Section 21 of the Pension Benefits Standards Act, 1985 (Canada) would depend on the specific facts of the case. However, in general, courts are likely to interpret the provision broadly to ensure that plan members have access to all relevant information about their pension benefits.

Alternatives or Different Interpretations:

One alternative interpretation of Section 21 of the Pension Benefits Standards Act, 1985 (Canada) is that it only requires plan administrators to provide basic information about pension benefits and contributions, rather than detailed information about investment performance or other factors that may affect the value of the pension plan.

Risks and Uncertainties:

One potential risk associated with Section 21 of the Pension Benefits Standards Act, 1985 (Canada) is that plan administrators may face legal action if they fail to provide accurate or complete information in the annual statements. Another risk is that plan members may not fully understand the information provided in the statements, which could lead to confusion or dissatisfaction.

Advice to the Client:

Based on the assessment of the law and the facts, our advice to pension plan administrators would be to ensure that they comply fully with the requirements of Section 21 of the Pension Benefits Standards Act, 1985 (Canada). This includes providing accurate and complete information in the annual statements and ensuring that plan members have access to all relevant details about their pension benefits.

Related Case Laws and Judgments:

1. Buschau v. Rogers Communications Inc. (2011 SCC 53) – This case involved a dispute over the disclosure of pension plan information to plan members. The Supreme Court of Canada held that plan administrators have a duty to provide complete and accurate information to plan members.

2. Monsanto Canada Inc. v. Ontario (Superintendent of Financial Services) (2004 SCC 54) – This case involved a dispute over the interpretation of pension plan provisions related to early retirement benefits. The Supreme Court of Canada held that pension plan provisions must be interpreted in a manner that is consistent with the objectives of the Pension Benefits Standards Act, 1985 (Canada).

3. Nolan v. Kerry (Canada) Inc. (2009 ONCA 670) – This case involved a dispute over the calculation of pension benefits for plan members. The Ontario Court of Appeal held that plan administrators have a duty to provide accurate and complete information about pension benefits to plan members.

4. IBM Canada Limited v. Waterman (2013 SCC 70) – This case involved a dispute over the interpretation of pension plan provisions related to the calculation of pension benefits. The Supreme Court of Canada held that pension plan provisions must be interpreted in a manner that is consistent with the objectives of the Pension Benefits Standards Act, 1985 (Canada).

5. Bisaillon v. Concordia University (2010 SCC 5) – This case involved a dispute over the interpretation of pension plan provisions related to early retirement benefits. The Supreme Court of Canada held that pension plan provisions must be interpreted in a manner that is consistent with the objectives of the Pension Benefits Standards Act, 1985 (Canada).

In conclusion, Section 21 of the Pension Benefits Standards Act, 1985 (Canada) is an important provision that requires pension plan administrators to provide annual statements to plan members. Compliance with this requirement is essential to ensure that plan members have access to accurate and complete information about their pension benefits, contributions, and other relevant details. Plan administrators should be aware of the legal requirements associated with Section 21 and take steps to ensure that they comply fully with these requirements.