Court allows plan amendment made before group layoffs

Change done out of self-interest, not ‘underhanded’
By Sarah Dobson
||Last Updated: 10/31/2008

terminated employees of Imperial Oil saw their claims to a pension plan dismissed in the Albert Court of Queen’s Bench. They had challenged a plan amendment made shortly before they were terminated that resulted in their ineligibility.

The 20 or so workers were let go in 1991 after the company’s acquisition of Texaco Canada. Just before the layoffs, Imperial amended the pension plans of both companies so members with 10 or more years had an additional condition that they be eligible to retire within five years of the termination date — meaning members would have to be 50 or older when let go to receive an enhanced early retirement annuity.