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ARTICLE · 24 JULY 2013

Non-Pension Post-Retirement Benefits – The GM Case

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Non-pension post-retirement benefits are an increasingly expensive benefit for employers and a benefit that is highly valued by employees.

CanadaEmployment and HR
Daniel Hayhurst
Daniel Hayhurst
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Non-pension post-retirement benefits (commonly referred to as "OPEB Benefits") are an increasingly expensive benefit for employers and a benefit that is highly valued by employees. As such, employers are increasingly looking to make changes to these benefits in order to control their benefits costs. OPEB Benefits typically are not funded, but rather usually are provided on a "pay as you go" basis. There is scope for making changes to OPEB Benefits, for both current employees and retired employees, provided that the contractual language so permits.

On July 17, 2013, the Superior Court of Justice (Ontario) released its decision in O'Neill v. General Motors of Canada Limited. In this case, General Motors of Canada Limited ("GM") decided to scale back health and life insurance benefits for certain non-union salaried employees who had retired between January 1, 1995 and October 20, 2011 (the "Class"). The Class took issue with these changes, and brought an action against

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