Canada govt wins C$28 bln case on pension fund payments

Wed Dec 19, 2012 9:48am EST
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OTTAWA Dec 19 (Reuters) - The Canadian government won a far-reaching case at the Supreme Court of Canada on Wednesday in which public-sector unions had demanded that it return over C$28 billion ($28.44 billion) to their pension plans.

The unions had alleged that the federal government had improperly taken the money out of their plans by way of contribution holidays and/or by direct withdrawal of surpluses.

The federal government had argued that it was acting within the laws governing the pensions and that in any case it would meet its obligation to pay the defined benefits.