Virc v. Blair 2017 Ont CA
The Pension Benefits Act exempts receipt of benefits of a pension plan from garnishment. A pension plan is defined as one that is organised and administered to provide pensions for employees, but it specifically excludes other types of plans that are prescribed by the regulations. A retirement compensation arrangement is prescribed by the regulations and it is defined under the Income Tax Act. The husband owed money to his estranged wife and she garnished the benefits from his retirement compensation arrangement. The Court noted that these benefits were not protected and were fair game for garnishment, without the deduction that would have been applicable had the benefits been wages. Interestingly, this retirement compensation arrangement was set up between a trust company and the husband’s corporation; the husband was the only beneficiary under the arrangement.
Written by Jonathan Speigel Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.