B.C. Court of Appeal dismisses challenge to pension fund's decision to raise retirement age
April 06, 2023
The Court of Appeal for British Columbia (“BCCA”) has dismissed an appeal from members of the British Columbia Credit Union Employers’ Pension Plan (“Plan”) that sought to overturn a summary judgement from the British Columbia Supreme Court that dismissed their action to prevent the Plan’s Trustees from raising the Plan’s Normal Retirement Date from 62 to 65. The Plan is unique among multi-employer plans as many of its terms are not collectively bargained, and are instead set by the Trustees based on actuarial advice.
The plaintiffs claimed that the Trustees breached their fiduciary duties to members when they selected new Trustees, and when they raised the retirement age. The plaintiffs further argued that the Trustees breached their duty to warn members about the Plan’s solvency deficiency, and the potential for an increase in the Normal Retirement Date as a result.
In dismissing the members’ appeal, the BCCA noted that unless the Trustees have surrendered their discretion to the court, there are only two circumstances where a judge can interfere in the exercise of their discretion. Namely, “if the trustees have taken into account irrelevant, improper or irrational factors”; or if their decision is one “that no reasonable body of trustees properly directing themselves could have reached.”
The BCCA found that the trial judge properly applied this principle, and that the Trustees had properly exercised their discretion. Specifically, they noted that the selection of Trustees did not breach the Trust agreement or any duty, that their decision to increase the Normal Retirement Date was reasonable, and that there was no duty to provide advanced waring of this change.
You can read the judge's decision by clicking on more information below:
