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LEGAL REPORT: LABOUR & EMPLOYMENT DB or not DB . . . that is the question Will Kerry hasten employers' move to defined-contribution pension plans? BY KELLY HARRIS T he landmark Supreme Court of Canada decision in Nolan v. Kerry (Canada) Inc. was quickly decried as a death knell for defined-benefit pension plans. Once thought of as the gold standard, the ability for companies to use surpluses in DB plans to fund a defined-contribution plan, seemed to mean companies would go running for the more consistent budgeting option. With DC plans, companies faced with faltering markets would no longer be on the hook for the risk inherent to DB plans. DC plans would also mean companies could accurately predict monthly costs. At the time of the Kerry decision, Hewitt Associates was conducting a sur- vey of pension plans in North America. The survey found a trend away from DB plans, which began in the early 1990s, had slowed in both Canada and the United States. Just as the good news for DB plans was being calculated, the Kerry decision was about to speed up the decline once again. Not so fast, says Mitch Frazer. The Torys LLP partner, chairman of the pen- sion and benefits section of the Ontario Bar Association, and treasurer of the pen- sion and benefits section of the Canadian Bar Association, says Kerry may actually mean a reprieve for DB plans. Previous court battles have been waged over control of plan surpluses and until recently, that control lay with Your foundation for pension legislation Ontario Pension Law Handbook, Second Edition This book offers a concise overview of the latest legal and regulatory issues surrounding pension plan and fund administration and compliance in Ontario. Unlike other texts, this resource reviews not only statutory and regulatory requirements but also includes extensive commentary. Perfectbound • 326 pp. • 2006 • $79 • P/C 0830010002 • ISBN 0-88804-429-1 Federal & Ontario Pension Legislation If you're responsible for pension law issues and governance, it's a must to ensure you're working in compliance with the current laws. Federal & Ontario Pension Legislation is published annually and consolidates all of the important legislation you need at hand. Perfectbound • Approx. 1,000 pp. • October 2009 • Standing order Approx. $89 Current edition only Approx. $99 • ISSN 1920-5880 Estates, Trusts and Pensions Journal Covers new trends in estates and trusts with special coverage of pensions issues. Includes informative articles, insightful comments on important cases and a discussion of useful texts. Parts and Bound Volume $185 • P/C 0335090999 • Back volumes $100 • P/C 0335100999 • ISSN 1487-3656 For a 30-day, no-risk evaluation call: 1.800.263.2037 CA067 Canada Law Book is a Division of The Cartwright Group Ltd • Prices subject to change without notice, to applicable taxes and shipping & handling. CA067 (CL 1-2h).indd 1 CL1009 www. C ANADIAN Law ye rmag.com OC T OBER 2009 43 9/14/09 3:56:11 PM Susan G. Seller Co nsulting Editor: Susan Seller Editor-in-Chief owbo Editorial Board: Cy Fien, Go R tham and Siân Matthews : Marni M.K . Whitaker rdon MacRae, Timothy Matthews, Q.C., Marilyn Piccini Roy , Catherine R oberts, Mark