Background:

• IBM Canada Limited sought rectification of its pension plan to correct drafting mistakes made in 2014, affecting the accrual of pension benefits for employees on disability leave.

Issues:

1. Rectification of drafting errors in the IBM pension plan.
2. Whether these errors resulted in unintended pension accrual rules.

Decision:

• The court granted rectification, acknowledging the mistakes were unintended and resulted from miscommunication between IBM and its service provider.

Key Details:

• The errors extended the age for pension accrual during disability from 55 to 65, not intended by IBM.
• IBM consistently administered the plan as if the errors had not been made, signaling no intention to change pension accrual rules.
• The court ordered the pension plan's language to be corrected as it stood between January 1, 2014, and June 30, 2019.

Outcome:

• The pension plan was to be rectified to reflect IBM's original intent and administrative practices.
• Costs were neither sought nor awarded in the decision.