Can Employers Reduce Retiree Benefits?
A recent Ontario Superior Court of Justice decision may have implications for pension reform a cross the country, including in New Brunswick. In O’Neill v General Motors of Canada, 2013 ONSC 4654 (“O’Neill”), the employer, General Motors of Canada (“GM”), substantially reduced the health care and life insurance benefits of former salaried and executive employees after they had retired. The central issue was whether GM was entitled to reduce the benefits of retirees.