Summary of Issue: Lump Sum

Decision 40302 Full Text of Decision 40302

Following the plant closure, clmts received a lump sum they could invest into becoming a member of a co-operative or in a pension plan. Referring to the statement made fy FC in Tashereau (A.795.92), Umpire found that this amount constituted earnings subsequent to the layoff, regardless of the method of investment chosen by clmts.

Decision A-0721.95 Full Text of Decision A-0721.95

A 55-year-old claimant accepted the early retirement offer of his employer (Domtar). A lump-sum amount of $45,981 was paid as a bridging supplement to age 65, and was transferable to an RRSP on a mandatory basis. Found to be a compensatory benefit to offset the loss of employment due to technological change, to be allocated in accordance with the Regulations. The FCA upheld the decision of the Umpire, basing its determination on the fundamental characteristics of a pension, namely payments designed to be spread out over the rest of a person’s lifetime, since the purpose of a pension is to provide the means of livelihood to an individual who has departed from the labour market. According to the FCA, the aim of the program was rather to indemnify the claimant for the monetary consequences of early retirement.

Decision 28310 Full Text of Decision 28310

Employer: SNC defence products. The claimants chose to receive a lump sum payment rather than a temporary annuity. As much as a result of the nature of the plan or of the control exercised by the claimants over the amout received or placed into a RRSP, the said amount does not constitute a pension.

Decision 28185 Full Text of Decision 28185

Held that the Board erred in deciding that an amount of $113,194 paid by Hydro-Québec after deduction, representing the taxable portion of the updated annuity, constituted earnings. Para. 57(2)(e) also applies to all amounts paid as or in lieu of pension.