No wonder companies are quickly moving to Defined Contribution Pension Packages
https://nelligan.ca/article/severance-p ... yee-whole/
Employees entitled to damages for loss of pension benefits
In Taggart v. The Canada Life Assurance Co.  O.J. No. 310, the Court of Appeal confirmed that employers are liable for loss of pension benefits during the reasonable notice period. Taggart involved the termination of a 30-year employee who was let go shortly after Canada Life was purchased by another insurance company. The employee was provided with a 24-month notice period severance offer, which consisted of two months working notice and a 22 months’ pay in lieu of notice. However, his pensionable service and credits were only continued for the two month working notice period.
Canada Life refused to provide Taggart with anything for loss of pension growth over the remaining 22 months. Credit for the 22-month period would have provided Taggart with more than 30 years of pensionable service and entitled him to an unreduced pension. As a result, Taggart refused to accept the severance package and commenced an action. All issues were resolved prior to trial except for the pension claim. Canada Life argued that terms of the pension plan only allowed accrual of pensionable service during active employment. Both the trial judge and the Court of Appeal rejected this position. The Court of Appeal stated that in approaching the issue it was first necessary to consider Taggart's common law rights to damages for breach of contract over the notice period and then to consider whether the terms of the pension plans alter or remove that common law right. The court expressly found that Taggart was entitled at common law to be kept whole throughout the notice period and as such was entitled to receive damages for the loss of pension benefits that would have accrued over that time. Furthermore, the court noted that because pension plans are unilateral contracts in nature, in order to remove the entitlement to pension losses during the notice period, the plan requires clear and unequivocal language that expressly removes the entitlement before a court will disallow damages for pension loss. The court found that the language of the pension plans in question was at best ambiguous and therefore Taggart was entitled receive damages for the loss of pension benefits.