Clear and concise drafting are key to the administration of any
pension or benefit plan. In this post, we review two recent cases
which highlight the challenges employers may face when plan terms
are not clear.
Ontario Superintendent of Financial Services, Notice of
Intended Decision, Pension Plan for Employees of Hewlett Packard
Enterprise Canada, December 28, 2018
In this case, the issue under consideration was whether a lump
sum payment of unused vacation time on termination of employment
should be included in the determination of final average earnings
under the pension plan. The plan administrator did not include the
lump sum payment when it calculated a retired member's
pensionable earnings. The retired member argued that the lump sum
payment should have been included in the calculation.
