Employer faces more pension trouble

Cyril Theriault,
Superintendent of Pensions

Tuesday,  September 20, 2005

Office Pavilion along with owner Scott Henderson faces 78 charges of failing to pay employees’ pensions for three years and court hearings are expected to begin next month.

This is the second charge against Mr Henderson as he is already facing charges for not paying employee pensions for his company Cayman Flooring and Kitchen Specialist Ltd. 

According to the National Pensions Office, Mr Henderson agreed to make pension payments for both companies going forward as well as catching up on back pensions, but then subsequently failed to make those payments.

Furthermore, the employee portion of the pensions were allegedly deducted from their pay cheques, but those funds were also not paid into their pension plan. 

On 15 September, Mr Henderson’s attorney, Clyde Allen, said there was a tremendous amount of information to go through for Cayman Flooring and Kitchen Specialist, but Hurricane Ivan wiped out most of those records so they needed more time. 

Moreover, the defence wanted to submit a proposal to the Crown. The next court hearing has been scheduled for 13 October.

The Superintendent of Pensions, Cyril Theriault stated he had no idea what the proposal could be. 

“Anything less than employees getting the money they are owed is too little as far as we are concerned,” said Mr Theriault.

If convicted on both cases, Mr Henderson and his companies, Office Pavilion, Cayman Flooring and Kitchen Specialists will be facing up to $5000 in fines and penalties up to $500 for each day the pensions have been overdue.

“This is the first employer that we have taken to court since the National Pensions Law took effect in 1998. We are expecting this first case to set a precedent on how court cases against employers will proceed in the future,” he said.

There are approximately 550 employers under investigation for not making pensions contributions on a timely basis. 

And although a number of companies are making payments, Mr Theriault said there appears to be an attitude among some companies there will be no consequences if they don’t make the pension payments.

He estimated that maybe six employers would go as far as being prosecuted from now through until June 2006.

“At the end of the day, we want employees to have a pension so that when they stop their working life they will be able to have a comfortable retirement,” said Mr Theriault.

Mr Allen and Mr Henderson were unavailable for comment.

    Back...