Giving the straight goods on pensions

Using clear language, providing information (not advice) can increase effectiveness
By Daniel Dumas
|Canadian HR Reporter|Last Updated: 09/26/2011

Organizations that don’t do a good job communicating with employees about their pension plans may be setting themselves up for legal trouble, as lawsuits have stemmed from poor communications about pension plans.

In 2008, a large paper company was ordered to pay $4.4 million to 25 managers who claimed they had received erroneous information about changes to their pension plan.

There was nothing in writing about the changes in question — the managers’ claim was based on verbal information given by a company representative. However, thatwasdeemedsufficient for the claim to proceed.