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Making Retirement Po...

Making Retirement Policies Known to Employees

May 15, 2000
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A recent decision of the BC Supreme Court involving a credit union demonstrates the importance of making retirement policies known to employees. In McLaren v. Pacific Coast Savings Credit Union, the court awarded damages for wrongful dismissal to a branch manager who had been retired by his employer at age sixty-five. When he was first hired, the credit union had no retirement policy. A policy of mandatory retirement at age sixty-five had been put in place in the course of amalgamations with other credit unions. The plaintiff did not become aware of it until he was advised of his pending retirement a few months the effective date. Because the retirement policy had not been brought to the plaintiff’s attention in a timely way, the court concluded that it did not form part of his employment contract. He therefore had been dismissed without cause or sufficient notice and the credit union was liable for damages.

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