Deemed Trust

(1) Where an employer receives money from an employee under an arrangement that the employer will pay the money into a pension fund as the employee’s contribution under the pension plan, the employer shall be deemed to hold the money in trust for the employee until the employer pays the money into the pension fund. (2) Money withheld by an employer, whether by payroll deduction or otherwise, from money payable to an employee shall be deemed to be money received by the employer from the employee. (3) An employer who is required to pay contributions to a pension fund shall be deemed to hold in trust for the members, former members and beneficiaries of the pension plan an amount of money equal to the employer’s contributions due and not paid into the pension fund. (4) Where a pension fund is wound up, an employer who is required to pay contributions to the pension fund shall be deemed to hold in trust for the members, former members and beneficiaries of the pension plan an amount of money equal to the employer’s contributions accrued on the date of the winding- up but not yet due under the plan or regulations. (5) An administrator has a lien and charge on assets of the employer in an amount equal to the amounts deemed to be held under sub-sections (1), (3) and (4). 37 (6) Sub-sections (1), (3) and (4) apply whether or not the money has been kept separate and apart from other money or property of the employer.