Grow-In Benefits: An Employment & Labour Perspective
As noted in prior blog posts (June 4, 2010 and January 7, 2010) the recent expansion of “grow-in” benefits to all involuntarily terminated employees (except for those who were dismissed for "wilful misconduct") will have significant implications for employers who sponsor a defined benefit pension plan. Previously, grow-in benefits applied only when a pension plan was being either fully or partially wound up. These amendments will make grow-in benefits applicable to all employees terminated after July 1, 2012, but as discussed in a recent Osler Update: Ontario Employment Terminations: Implications of New Pension “Grow-in” Rules by Jason Hanson, severance packages negotiated now may have to take these amendments into account.
