When would the Superintendent terminate a pension plan?
Termination is an extreme measure. Termination may be appropriate where the purpose of the plan is obstructed or where benefits are at risk. Termination is a discretionary decision of the Superintendent.
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What happens to the pension plan assets when a plan terminates?
A pension fund holds and safeguards the assets of a pension plan. This ensures that the moneys in the pension fund are kept separate and apart from the employer’s own moneys. The pension fund can only be wound up after the plan is terminated. Where a plan has terminated, the administrator will determine how the pension benefits will be distributed. The plan terms will provide who has the authority to terminate the plan – usually it is the employer or administrator.
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