The trustees of a multi-employer pension plan of BC Credit Unions were again vindicated, this time by the Court of Appeal, when an appeal of the dismissal of a claim brought with the assistance of the BC Government Employees Union in the name of 4 members of the Plan was dismissed.
The plaintiffs alleged that the trustees breached their fiduciary duties in relation to amendments made to the plan to increase the normal retirement age from 62 to 65 and for failing to appoint trustees who were non-management level employees of the participating employers of the plan. The Court of Appeal dismissed the appeal largely for the reasons of the trial judge.
This is an important decision in that it confirms that discretionary decisions of trustees of a pension plan are entitled to significant deference. In particular, unless the discretion of trustees has been surrendered to the court, there are only two circumstances in which a judge can interfere in the exercise of their discretion: 1) if the trustees have taken into account irrelevant, improper or irrational factors; or 2) if they have reached a decision that no reasonable body of trustees properly directing themselves could have reached.
Application for leave to appeal to the Supreme Court of Canada was denied.
Fasken advised the trustees with a team including Tracey M. Cohen, KC; and Julia Kindrachuk.
Jurisdiction
- British Columbia
