Can an employer cancel a contributory pension plan that was due to be paid to an employee as a result of his service?
Saskatchewan, Canada
The following excerpt is from Bradley and Forsyth, on their own behalf and on behalf of all retired employees of the Saskatchewan Wheat Pool and Greer, on his own behalf and on behalf of the employees of the Saskatchewan Wheat Pool v. Saskatchewan Wheat Pool, 1984 CanLII 2300 (SK QB):
In Kern v. City of Long Beach, 179 P. (2d) 799, the problem involved a contributory pension plan which the city purported to cancel shortly prior to the plaintiff having completed the prescribed period of service entitling him to pension benefits. It was concluded that the employee had earned some pension rights as soon as he performed substantial services for his employer. It was stated that the employee was not fully compensated upon receiving his salary payments because he had earned, in addition, certain pension benefits to be paid in the future. The employer could therefore no more deny or impair the contingent liability to pay pension benefits than it could refuse to make the salary payments immediately due.
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