Class Actions & Retiree Benefits — New Risks?

This article was originally published in Blakes Bulletin on Pensions - February 2005

Canadian employers have, for decades, used substantial employment benefits packages to attract and retain employees. These benefits packages often include a variety of post-employment benefits for retirees (including life insurance, prescription drug, supplementary health and dental benefits). For employers, one attractive feature of these retiree benefits is their low up-front costs.

To date, the potential long term costs and liabilities associated with these retiree benefits programs have not received significant legal or media attention. However, this appears to be changing.