PENSIONS |
Margolis v. Canada
T-40-98
2001 FCT 85, Campbell J.
16/2/01
26 pp.
Surviving spouse and estate of public service employee invoking Charter, s. 15 and claiming death benefit under Public Service Superannuation Act and Supplementary Death Benefit Regulations only 20% of what should be--Act, s. 47(1) and Regulations, s. 15 providing benefit payable under Supplementary Death Benefit Plan (SDB Plan) subject to reduction of one-tenth for every year of age in excess of 60 attained by participant--Plaintiff's husband 69 years old when died, with result plaintiff received only two-tenths of benefit under SDB Plan--Issue whether Act, s. 47 and Regulations, s. 15 contrary to Charter, s. 15--As parties agree provisions impose differential treatment on basis of age, question whether distinction discriminatory--Applying Law v. Canada (Minister of Citizenship and Immigration), [1999] 1 S.C.R. 497, plaintiffs must only prove, on balance of probabilities, that effect of impugned provisions violation of essential human dignity --Provisions in violation of Charter, s. 15--Plaintiffs arguing SDB Plan death benefit scheme with attributes of term life insurance plan, while defendant arguing SDB Plan term life insurance plan with attributes of death benefit scheme--On evidence, SDB Plan intended to be two things at same time: one-time death benefit payment to meet expenses incurred on account of death, and term insurance with large payout before age of 60, and reduced payout thereafter--Single concept combining two dissimilar ideas--Judicial notice taken of fact death benefits of surviving spouse same whether participant dies at 60 or 70--Illogical to maintain contrary--Conflict created by marrying death benefit feature to term life insurance feature within benefit concept such as SDB Plan leading to result reduction aspect introduced by term insurance feature contaminating whole scheme relative to Charter, s. 15--Illogical nature of reducing "death" benefit according to age of participant on death beyond 60 resulting in violation of human dignity of participant and surviving spouse--Not proven that survivors over 60 have general decreased need for financial benefit--Indeed, opposite true--As violation of human dignity of participant and surviving spouse, reduction aspect of SDB Plan contrary to Charter, s. 15--Damage claim should be recalculated to take account of premiums that would have been due if reduction aspect not part of SDB Plan--Most convenient way to arrive at final damage award to refer calculation to reference--Public Service Superannuation Act, R.S.C., 1985, c. P-36, s. 47 (as am. by S.C. 1992, c. 46, s. 25)--Supplementary Death Benefits Regulations, C.R.C., c. 1360, s. 15--Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.) [R.S.C., 1985, Appendix II, No. 44], s. 15.