IN THE MATTER OF the Pension Benefits Act, R.S.O. 1990, c. P.8 (the “Act”), in particular sections 69 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

AND TO: Canada Life Group Retirement Services
255 Dufferin Ave., T540
London, ON N6A 4K1

Custodian

TAKE NOTICE THAT pursuant to section 69 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 wind up the Pension Plan for the Employees of Higginson Equipment Inc., Registration Number 0259606, effective October 1, 2025. Details of this intended decision are described below.

THE HEAD REQUIRES THE ADMINISTRATOR TO IMMEDIATELY TRANSMIT A COPY OF THIS NOTICE AND THE REASONS FOR INTENDED DECISION TO THE MEMBERS AND RETIRED MEMBERS OF THE PLAN.

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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, 7^th Floor
Toronto, Ontario
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, as amended. 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

I. INTRODUCTION

1. The Head intends to order the wind-up of the Pension Plan for the Employees of Higginson Equipment Inc., Registration Number 0259606 (the “Plan”), pursuant to section 69 of the Act due to the failure of Higginson Equipment Inc. to make contributions to the Plan as required by the Act.

II. BACKGROUND

2. Higginson Equipment Inc. sponsors and administers the Plan. The Plan is a single-employer defined contribution pension plan with 13 members based on the last Annual Information Return filed on July 9, 2025.
3. Between January 2023 and March 2024, Higginson Equipment Inc. failed to remit employer and employee contributions to the Plan custodian (the “Custodian”).
4. On August 13, 2024, FSRA issued an order requiring Higginson Equipment Inc. to remit all outstanding pension contributions with interest (the “Regulatory Order”).
5. After repeated communications from FSRA, Higginson Equipment Inc. remitted all employee contributions and entered into a payment plan to remit outstanding employer contributions.
6. FSRA directed that Higginson Equipment Inc. give notice of its failure to remit contributions to Plan members.
7. Higginson Equipment Inc. eventually remitted outstanding contributions to the Custodian for the period from January 2023 to March 2024, on October 31, 2024.
8. FSRA issued a warning letter to Higginson Equipment Inc. on November 12, 2024 (the “Warning Letter”). The Warning Letter reminded Higginson Equipment Inc. of the requirement to remit employer and employee contributions to the Custodian in a timely manner.

III. GROUNDS FOR PLAN WIND-UP

9. Beginning in May 2025, Higginson Equipment Inc. failed to remit employer and employee contributions of approximately $1,900 per month to the Custodian. To date, Higginson Equipment Inc. has failed to remit contributions for the period from April to August 2025.
10. The Custodian communicated with Higginson Equipment Inc. regarding its failure to remit contributions. Higginson Equipment Inc. told the Custodian that the delay was due to a change in their corporate bank and the transition had been taking longer than anticipated.
11. On August 18, 2025, FSRA sent a letter to Higginson Equipment Inc. directing it to bring the Plan into compliance by no later than September 2, 2025. Higginson Equipment Inc. failed to respond and has not brought the Plan into compliance by remitting the outstanding contributions.
12. Presently both the employer and employee contributions are outstanding for the months of April to August 2025 in the approximate amount of $9,500.
13. 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.
14. Section 4(4) of Regulation 909 requires that employer contributions for a defined contribution pension plan be paid in monthly instalments within 30 days following the month for which the contributions are payable. Section 4(4) of Regulation 909 also requires that all sums received by the employer from the 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.
15. Timely remittance of employer and employee contributions is a fundamental obligation of pension plan administrators. However, Higginson Equipment Inc. has repeatedly failed to remit contributions, despite the Regulatory Order, the Warning Letter, and extensive efforts by FSRA to bring the Plan into compliance.
16. Section 69(1)(b) of the Act provides that the Chief Executive Officer of FSRA may order the wind up of a pension plan if the employer fails to make contributions to the pension fund as required by the Act or the regulations.
17. The Head is satisfied that Higginson Equipment Inc. has repeatedly failed to make contributions to the Plan fund as required by the Act and the regulations. On this basis, the Head is satisfied that the Plan should be wound up, effective October 1, 2025.
18. The Head is satisfied that Members and Retired Members of the Plan should be promptly provide with a copy of this Notice of Intended Decision as they may be impacted by it.
19. Such further and other reasons as may come to my attention.

DATED at Toronto, Ontario, October 1, 2025

Original signed by

David Bartucci
Head, Pension Plan Operations and Regulatory Effectiveness

By delegated authority from the Chief Executive Officer

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