This appeal concerned the proper calculation of cost-of-living adjustments under a pension plan, specifically the rounding policy for the annual percentage increase in the Consumer Price Index (CPI).
The motion judge had found the respondents were entitled to round the CPI increase to two decimal points (1.49%), resulting in a 1% pension increase.
The appellant argued the plan required adherence to Statistics Canada's one-decimal policy (1.5%), which would result in a 2% pension increase.
The Court of Appeal found the motion judge made a palpable and overriding error of fact by ignoring uncontradicted evidence that the two-decimal rounding provision in the plan would still have meaning even with the Statistics Canada one-decimal policy for the Pension Index, particularly for recently retired pensioners.
The court held that the plan's language required adopting Statistics Canada's one-decimal policy for both the annual percentage increase and the CPI.
The appeal was allowed, and summary judgment was granted in favour of the appellant, leading to a 2% pension increase for 2017.