Summary of Issue: Retirement Allowances

Decision 64283 Full Text of Decision 64283

The claimant received a separation allowance paid in the form of a weekly rate benefit until he reached 55 years of age. The evidence shows that these are monies arising out of the claimant's working with the employer, based on his years of service and his weekly pay rate. The Umpire concluded that these bridging payments constitute earnings under section 35(2)(e) of the Regulations and must be allocated.

Decision A-0209.02 Full Text of Decision A-0209.02

The Commission allocated a retirement allowance the claimant had deposited into a RRSP. The Court ruled that an amount received as a retirement allowance constitutes earnings that must be allocated in accordance with subsection 36(9) of the Employment Insurance Regulations.

Decision 51432A Full Text of Decision 51432A

Refer to summary indexed under FCA A-0209.02

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 29560 Full Text of Decision 29560

Early retirement. Sum of $45,981. paid as a transition supplement until reaching the age of 65, and requiring a roll over into a RRSP. Held as severance pay for loss of employment to be allocated pursuant to section 58(9) of the Regulations.

Decision 19846 Full Text of Decision 19846

An amount equal to claimant's annual pensionable salary was part of an incentive package which he used, along with money he borrowed, to purchase 20 years of pensionable service so as to provide himself with an annual pension. Not taxed as income by Revenue Canada.

Decision 18681 Full Text of Decision 18681

Supplementary pension plan; trust fund administered by an insurance company. CEIC considered as earnings the employer's share paid to the insured person when his position was abolished. In the view of the Board, these were savings as in VENNARI.

Decision 17716 Full Text of Decision 17716

Resolved by the City to pay an executive employee a sum of $46000, which would go to a RRSP of his choice as a contribution to his pension fund, given that the City did not provide a plan for such managers. Decided that it was in fact severance pay.

Decision A-1037.88 Full Text of Decision A-1037.88

In a sense, any retirement pension is a retirement allowance. A pension is in fact nothing but a periodic allowance. The UI Regulations distinguish between the 2. Without defining either, the description of a retirement allowance cannot be denied to a lifetime periodic allowance.

Decision 15762 Full Text of Decision 15762

Refer to: A-1037.88

Decision 13694 Full Text of Decision 13694

Refer to: A-0388.87

Decision A-0388.87 Full Text of Decision A-0388.87

The Retirement Transitional Allowance of $78 per month was a retirement pension under para. 57(3)(a) and not earnings prior to 5-1-86. It is argued that pension in the Regulations was used in a very narrow sense. Nothing suggests such a narrow and unusual interpretation.

Decision 14680 Full Text of Decision 14680

Claimant received a retirement bonus which he directed that it be paid into an RRSP. With respect to whether this is income, it is clear that, putting aside the RRSP issue, this money arises out of claimant's former employment and comes within 57(2)(a).

Decision 14632 Full Text of Decision 14632

Under 57(2)(a), the Commission is obliged to take into account the entire income arising out of any employment. This includes vacation pay, severance pay and incentive payments to encourage retirement.

Decision 14195 Full Text of Decision 14195

Severance award by Firestone upon separation at age 65 or prior if incapacitated. Claimant medically discharged. Not paid under a WLI or pension plan. Lump sum. No contributions. Commission says it is severance pay. Held to be earnings.

Decision 12394A Full Text of Decision 12394A

Severance or retirement benefits are generally calculated with regard to length of service and contributions to organization. An amount paid in exchange for claimant's agreeing to leave employment following a wrongful dismissal differs from that.

Decision 13043 Full Text of Decision 13043

Postal employee had taken advantage of early retirement incentive payment program or, as it has come to be called, an intensive attrition program instituted in 7-85.

Decision 12838 Full Text of Decision 12838

Paid upon separation from Johnson Controls in 6-85 in addition to other monies. Not a retirement pension. Entire amount rolled over into 3 RRSPs, so claimant had total control.

Decision 12279 Full Text of Decision 12279

Claimant has total control over the $60084 to use it as he sees fit. If it was the intention of the employer or the true nature of the payment that it be used for pension purposes only, that kind of restriction would have been built in to the "retirement package". [p. 6]

Decision 11952 Full Text of Decision 11952

Job abolished and claimant took early retirement. I have some difficulty with the lump sum being called retirement allowance because here the job had been abolished and claimant not yet 65. It seems more accurate to refer to it as severance pay.