Pension Benefits Standards Act, 1985
Marginal note:Effect of sale, etc., of business
(a) an employer who is a party to a pension plan sells, assigns or otherwise disposes of all or part of its business or undertaking or all or part of the assets of its business or undertaking,
(b) an employee of that employer becomes an employee of the person acquiring the business, undertaking or assets (in this section called the “successor employer”), and
(c) the successor employer does not assume responsibility for the accrued benefits of the employer’s pension plan,
the employee continues to be entitled to the benefits provided under the employer’s plan in respect of the period of membership in that employer’s plan, without further accrual.
(2) Where the events described in paragraphs (1)(a) and (b) occur, whether or not the successor employer assumes responsibility for the accrued benefits of the employer’s plan, then,
(a) for the purposes of the employer’s plan, membership in the employer’s plan of an employee referred to in paragraph (1)(b) shall be deemed not to have ceased by reason of those events; and
(b) for the purposes of
(i) determining the period of employment with respect to any eligibility condition of the successor employer’s pension plan, and
(ii) determining whether such an employee is entitled to a benefit under a pension plan of the employer or of the successor employer,
the period of employment shall be deemed to include employment with both the employer and the successor employer without any interruption.
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