Termination Of LTD Benefits At Age 65 Means Plan Not "Bona Fide" Under Human Rights Code

Since the elimination of mandatory retirement in British Columbia (and across the country), we have seen a flurry of cases that deal with the issue of the provision of benefits to employees aged 65 and older. In September of this year a new decision was added to this growing body of case law: Okanagan College v. Okanagan Faculty Association ("Okanagan College"). The decision is a departure from the interpretative approach that has been taken in BC previously about how to apply the "bona fide" test found in section 13(3)(b) of the Human Rights Code ("Code"), where long term disability ("LTD") benefit coverage terminates for employees once they reach age 65. Termination of LTD coverage at age 65 is a common feature in LTD plans across the country, so the arbitrator's decision that the plan was not "bona fide" is an important one to be aware of for any sponsor of such a program.