Do Canadian pension laws impact corporate restructurings and transactions?
Yes. The diverging pensions legislation and regulations in Canada can have a significant impact on the structuring of corporate transactions and restructurings. For example, corporate reorganization or downsizing can trigger a full or partial wind-up of a companys pension plan, resulting in increased plan liabilities and, possibly, a requirement to distribute any surplus assets. Further, if the corporate transaction or restructuring involves any transfer of pension assets and liabilities from one pension plan to another following a sale, that transfer requires regulatory approval.
