Jordan Fremont comments on what plan sponsors should consider when moving from a single-employer to a jointly sponsored pension plan (JSPP) in Benefits Canada. This includes:
- Why a plan sponsor’s administrative responsibilities don’t completely disappear once it joins a JSPP.
- If the new plan means a cut in member benefits, plan sponsors have to be aware of any contractual obligations that would affect a merger and be prepared for the possibility of constructive dismissal claims.
- The regulatory hurdles DB plans have to clear when moving to a JSPP, and why it’s crucial for plan sponsors to communicate clearly, and work in partnership with their unions where relevant, to achieve member buy in.