Are there any restrictions on an employers ability to withdraw surplus from a pension plan?
Pension legislation in Canada places limits on an employers ability to withdrawal surplus. Generally, regulatory approval must first be obtained. In many cases, the consent of a certain percentage of plan members must also be obtained before any surplus can be withdrawn by the employer. In the Province of Qubec, surplus withdrawals from an ongoing plan are prohibited; on plan wind-up, any withdrawal is subject to a surplus sharing proposal that must not be opposed by 30% or more of the members of the plan, failing which the surplus distribution is determined through compulsory arbitration.
