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Class Action Lawsuit re: Pension?

Keebler Elf

The Original Elf
Aug 31, 2001
14,572
203
63
The Keebler Factory
If a company has a more provident pension plan (Plan A) and then creates a less provident plan (Plan B) for new employees while maintaining Plan A for existing employees, and all contributions from all employees goes into one fund to pay out the benefits to both plans, is there the potential for a class action lawsuit by the employees of Plan B?

The rationale would be that the members in Plan B are paying for the benefits of Plan A but do not (and cannot) receive any of the benefits of Plan A.

And before someone makes the comparison of the CPP, all working Canadians pay into the CPP and many/most receive benefits but all of them are part of the same plan with the same benefits (adjusted by time of course). Depending on when you work and contribute, your rates may be lower, but that's all about timing as opposed to there clearly being different tiers to the plan.

Anyone with any pension expertise out there?
 

johnny

New member
Feb 12, 2002
232
0
0
This has been dealt with in the past but i just cant rememebr the outcomes.
It would not be a class action, it would be an appeal to the financial services commision of ontario (fsco)

http://www.fsco.gov.on.ca/

You can do some research i know it has happened in the past, just dont rememebr the outcome.

Most DB pension plans are under an extreme amount of pressure right now and employers are looking to find a more sustainable alternative. So i can see this example happening more and more often.
 
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