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ARTICLE · 12 AUGUST 2011

Supplemental Pension Plans Should Be Read Together With Their Underlying Registered Pension Plan

Stikeman Elliott LLP
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In a recent decision, the Ontario Court of Appeal (the Court) upheld a motion judge’s interpretation of the plain meaning of the pension documents and denied a former employee’s claim to an unreduced pension at 62.

CanadaEmployment and HR
The Labour And Employment Group
The Labour And Employment Group
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In a recent decision, the Ontario Court of Appeal (the Court) upheld a motion judge's interpretation of the plain meaning of the pension documents and denied a former employee's claim to an unreduced pension at 62.

Facts:

Mr. Creber, a senior VP and CFO of Revios Canada Ltd. (the Company), was terminated in 2006 at age 52. While employed by the Company, Mr. Creber was a member of its registered pension plan (the Plan) and Executive Supplementary Pension Agreement (the ESPA). The Company started an action in which it sought a declaration that Mr. Creber was not entitled to an unreduced pension at 62 under either the Plan or the ESPA. Mr. Creber defended the action and counter claimed for the benefit. The motion judge granted the declaration and M. Creber appealed. Mr. Creber argued that the provision of the ESPA which provided an unreduced pension at 62 to employees who had taken "early retirement" applied to him, even though under the Plan he was only eligible

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