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Legal Action by Pension Plan Members Against Trustees Dismissed by B.C. Supreme Court
BC Financial Services Authority (“BCFSA”) is sharing a recent ruling by the Supreme Court of British Columbia to the attention of pension plan administrators in the province.
In a decision pronounced on April 19, 2022, the Supreme Court dismissed the claims that were made against the Trustees of the B.C. Credit Union Employee’s Pension Plan (the “Trustees”, the “Plan”) by four members of the Plan (the “Plaintiffs”). The decision shows the discretion Trustees have in administering a pension plan, and the circumstances in which a court may interfere.
The plaintiffs alleged that the Trustees breached their fiduciary duties by, failing to appoint a representative Board of Trustees with currently employed or retired Members as Trustees, failing to warn members about the solvency deficiency of the Plan that existed in 2015, and deciding to increase the Normal Retirement Date from age 62 to age 65.
For a summary of the ruling, visit Litigation & Dispute Resolution Bulletin|Fasken
To view the full Supreme Court of B.C. ruling, visit Larkin v Johnson, 2022 BCSC 603