Can a pension trust be terminated?

Second, unlike other trusts, pension trusts are not stand-alone instruments. They serve only as the vehicle for holding and managing the funds of the pension plan. In the present case, the Trust agreement is made part of the Plan and is dependent on the Plan for which it was created. The two instruments are therefore indissociable. Pension trusts cannot be terminated without taking into account the provisions in the pension plan documentation and the legislation that governs the pension plan. While there are no indirect effects which arise on the application of the rule in Saunders v. Vautier to other types of trusts, that is not the case with pension trusts. Application of the rule would end a pension trust but it would not deal with termination of the pension plan. However, termination of the pension plan in accordance with the PBSA is a condition precedent to distribution of the assets held in the pension trust. [See Note 13 below]