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Financial Services Regulatory Authority of Ontario

IN THE MATTER OF the Pension Benefits Act, R.S.O. 1990, c. P.8 (the “Act”), in particular sections 87 and 89;

AND IN THE MATTER OF the Pension Plan for the Employees of Higginson Equipment Inc., Registration Number 0259606.

NOTICE OF INTENDED DECISION

TO:
Higginson Equipment Inc.
PO Box 5011 Stn LCD 1
#1-1175 Corporate Drive,
Burlington, ON L7L 5V5

Attention:     
Bill Allen, President
Caryes Allan, Vice President

Employer & Administrator

TAKE NOTICE THAT pursuant to section 87 of the Act, and by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Head, Pension Plan Operations and Regulatory Effectiveness (the “Head”) intends to make an order to require Higginson Equipment Inc. to remit $34,931.46 (plus interest) in respect of outstanding employer and employee contributions to the pension fund of the Pension Plan for the Employees of Higginson Equipment Inc., Registration Number 0259606, no later than 10 days after the date of the order.

Details of this intended decision are described below.

SI VOUS DÉSIREZ RECEVOIR CET AVIS EN FRANÇAIS, veuillez nous envoyer votre demande par courriel immédiatement à: contactcentre@fsrao.ca.

YOU ARE ENTITLED TO A HEARING BY THE FINANCIAL SERVICES TRIBUNAL (THE “TRIBUNAL”) PURSUANT TO SUBSECTION 89(6) OF THE ACT. A hearing by the Tribunal about this Notice of Intended Decision may be requested by completing the enclosed Request for Hearing Form (Form 1) and delivering it to the Tribunal within thirty (30) days after this Notice of Intended Decision is served on you. The Request for Hearing Form (Form 1) must be mailed, delivered, faxed or emailed to:

Address:       
Financial Services Tribunal
25 Sheppard Avenue West, 7th Floor Toronto, ON
M2N 6S6
Attention: Registrar

Fax: 416-226-7750

Email: contact@fstontario.ca

TAKE NOTICE THAT if you do not deliver a written request for a hearing to the Tribunal within thirty (30) days after this Notice of Intended Decision is served on you, an order will be issued as indicated in this Notice of Intended Decision.

For additional copies of the Request for Hearing Form (Form 1), visit the Tribunal’s website at www.fstontario.ca.

The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure for Proceedings before the Financial Services Tribunal (“Rules”) made under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22. The Rules are available at the website of the Tribunal: www.fstontario.ca. Alternatively, a copy can be obtained by telephoning the Registrar of the Tribunal at (416) 590-7294, or toll free at 1-800-668-0128 extension 7294.

REASONS FOR INTENDED DECISION

  1. Higginson Equipment Inc. (the “Employer”) sponsors and administers the Pension Plan for the Employees of Higginson Equipment Inc., Registration Number 0259606 (the “Plan”). The Plan is a single-employer defined contribution pension plan.
  2. The custodian of the Plan (the “Custodian”) reported to the Financial Services Regulatory Authority of Ontario (“FSRA”) that the Employer had failed to remit Employer and employee contributions in respect of the Plan for the period from January 2023 to March 2024.
  3. The Employer has failed to remit contributions totalling $34,931.46.
  4. The Custodian and FSRA staff have requested that the Employer remit outstanding contributions. The Employer has not provided an adequate explanation to the Custodian or FSRA for its failure to remit contributions in respect of the Plan.
  5. Section 55(2) of the Act requires an employer to make contributions in accordance with the prescribed requirements, in the prescribed manner and at the prescribed times.
  6. Section 4(4) of Regulation 909 requires that employer contributions be paid in monthly instalments within 30 days following the month for which the contributions are payable.
  7. Section 4(4) of Regulation 909 also requires that all sums received by the employer from an employee as the employee’s contribution to the pension plan be remitted within 30 days following the month in which the sums were received or deducted.
  8. Section 87(1)(c) of the Act provides that the Chief Executive Officer may make an order requiring an administrator or any other person to take any action in respect of a pension plan or a pension fund if the Chief Executive Officer is of the opinion, upon reasonable and probable grounds, that the administrator of the pension plan, the employer or the other person is contravening a requirement of the Act, the regulations made under the Act, or the FSRA rules.
  9. The Employer has not complied with the requirements to remit employee or employer contributions for the period from January 2023 to March 2024 to the Plan fund. As a result, the Employer has contravened the Act and its regulations.
  10. The Head is satisfied that the Employer should be ordered to remit to the Custodian the required contributions of $34,931.46 in respect of the Plan, plus interest payable from the date the contributions were due to the date payment is made.
  11. Such further and other reasons as may come to my attention.

DATED at Toronto, Ontario, June 13, 2024.

Original signed by

David Bartucci
Head, Pension Plan Operations and Regulatory Effectiveness
Financial Services Regulatory Authority of Ontario

By delegated authority from the Chief Executive Officer

Si vous desirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immediatement a : contactcentre@fsrao.ca.