Pension plan governance: The employer's conflicting roles as sponsor and administrator

In Ontario, almost all pension plans are administered by the employer. As a result, the employer wears two hats with respect to the pension plan. It is the administrator and simultaneously the sponsor.; The main purpose of this thesis is to highlight the problems raised by the structure of pension plans management where the employer is the administrator of the plan. I will first analyse how this structure of management works. I will then explain the statutory and common law duties imposed on the individuals involved in the management. We will see that there is uncertainty with regard to the delineation between the role of sponsor and administrator, and with regard to the duties attached to each of these roles. An inherent conflict of interest exists when at once a person is sponsor, and administrator.; Suggestions can be made to solve these problems. However, the only efficient propositions would entail the removal of the unilateral exercise of control and decision-making from the employer. A look at the Swiss and Quebec systems can be inspirational. Both systems have made participation of members in the management of pension plans mandatory. Participation is not a new concept, and we will briefly examine its governing principles.; Switzerland imposes joint management, with equality of employees and employer's representatives, while Quebec requires the pension plan to be administered by a pension committee composed of at least two members representatives and a neutral party. I will highlight the advantages and disadvantages of each system. (Abstract shortened by UMI.)...