Retailer allowed to amend DB plan to establish DC plan
The Ontario Superior Court has ruled Hudson’s Bay Co. was allowed to amend a defined-benefit plan to establish a defined-contribution section of the plan.
A class-action lawsuit had alleged the owner of Zellers, the Bay and Home Outfitters began taking surplus money (about $120 million) from a trust for former Simpsons employees in 1994 to pay for the pensions of Zellers employees and Kmart employees in 1998. (HBC acquired Zellers in 1978, Simpsons in 1979 and Kmart in 1998.)
The suit sought full repayment of the diverted sum to the employees or return of the sum to the pension, which is set up as a trust. Filed almost five years ago, the suit also alleged the retailer wrongfully amended the pension plan of former Simpsons employees in 1988 and unlawfully revoked the trust without telling plan members.
The judge ruled no breach of trust or fiduciary duty occurred because the old Simpson employees and the Zellers and Kmart employees are rightful beneficiaries of the trust fund.
A class-action lawsuit had alleged the owner of Zellers, the Bay and Home Outfitters began taking surplus money (about $120 million) from a trust for former Simpsons employees in 1994 to pay for the pensions of Zellers employees and Kmart employees in 1998. (HBC acquired Zellers in 1978, Simpsons in 1979 and Kmart in 1998.)
The suit sought full repayment of the diverted sum to the employees or return of the sum to the pension, which is set up as a trust. Filed almost five years ago, the suit also alleged the retailer wrongfully amended the pension plan of former Simpsons employees in 1988 and unlawfully revoked the trust without telling plan members.
The judge ruled no breach of trust or fiduciary duty occurred because the old Simpson employees and the Zellers and Kmart employees are rightful beneficiaries of the trust fund.
