It was proposed that an executive participate in a non-funded supplementary retirement arrangement under which, if he retired after 12 years of service, he would receive annual pension benefits equal to 30% of his average annual remuneration during the three-year period preceding his retirement (which benefits would continue for 15 years subsequent to his retirement, and with provision for his spouse receiving 75% of the benefits should he die). With respect to the issue as to whether payments under the arrangement were considered to be something other than a pension due to the short period (12 years) before vesting occurred, the Department was of the view that a pension of 30% after 12 years of service was commensurate with a normal pension of 70% after 35 years.
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