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Non-plan-sponsor held liable for pension plan deficit

Monday, October 02, 2017 @ 9:28 AM | By Sonia Mak

In Tibbett & Britten Group Canada Inc. v. Sobeys Inc. 2016 ONSC 643, the Ontario Superior Court of Justice held that the successor of the seller of a business was contractually liable to fund the wind-up deficit of the purchaser’s pension plan.

Oshawa Holdings Limited (Oshawa) sold its warehousing and transportation business to SWO Distributions Centre Ltd. (SWO). The asset purchase agreement required SWO to offer employment to all employees of the business and to establish a registered pension plan for them. SWO set up a...