Michelin told the Nova Scotia Supreme Court yesterday that the way it handled its pension plan surpluses was “prudent and defensible.”

A group of the company’s pensioners is suing the company over $268 million it says is owed to the plan.

Michelin claims the contribution holidays were necessary to keep the fund from growing larger than regulations allow.

The company says it improved benefits, eliminated employee contributions and took contribution holidays to keep the surplus from growing too large. Employees haven’t paid into the plan in two decades.

The hearing is scheduled to resume Friday.

To comment on this story email craig.sebastiano@rci.rogers.com.

Copyright © 2021 Transcontinental Media G.P. Originally published on benefitscanada.com

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