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Good faith and temporary retirement supplement under LMEDA

ATA/215/1997Court of Justice / Administrative ChamberApr 8, 1997Partially Granted

Open source

Extracted by Omnilex

Omnilex summary

The plaintiff sought a pecuniary remedy under LMEDA after receiving a taxable capital payment rather than a pension. The court held that the administration remained bound by the principle of good faith and could not expect the plaintiff to infer that a 'temporary retirement supplement' excluded any state benefit simply because her second-pillar benefit was paid in capital form. However, the plaintiff could not establish damage by pointing to the interest earned on the capital she received.

Omnilex headnote

LMEDA. 2; protection of legitimate expectations and assessment of damage where second-pillar benefits are taken as capital rather than as a pension. The administration is bound by the principle of good faith where its conduct or information could lead an insured person to rely on the availability of a temporary retirement supplement. The insured person cannot be required to construe the concept of a temporary retirement supplement as excluding all state benefits merely because the occupational pension is paid in a capital lump sum. Nevertheless, no compensable prejudice exists to the extent that the person has earned interest on the capital payment and cannot show an actual economic loss attributable to the administration's conduct.

Full text

Descripteurs

ACTION PECUNIAIRE; PRINCIPE DE LA BONNE FOI; PRESTATION DE LIBRE PASSAGE; LIBRE PASSAGE(ASSURANCES); RENTE(EN GENERAL); INTERET(FRUIT CIVIL); CE

Normes

LMEDA.2

Résumé

Administration liée par la protection de la bonne foi de l'administré. On ne saurait exiger de celui-ci qu'il comprenne la notion de "complément temporaire de retraite" comme excluant toute prestation de l'Etat au titre de la LMEDA à une personne qui bénéficierait de son second pilier sous forme de capital et non de rente. La demanderesse, qui a reçu un capital imposable en lieu et place d'un rente, ne peut se plaindre d'un préjudice en raison des intérêts qu'elle a pu toucher sur le capital.

Keywords

good faithlegitimate expectationsretirement supplementcapital paymentpensiondamageinterestsocial insurance

Extracted by Omnilex

Key legal questions extracted by Omnilex

Key legal question

Whether the administration was bound by the protection of good faith when assessing entitlement to a temporary retirement supplement under LMEDA.

Extracted holding

The administration was bound by the protection of good faith; the plaintiff could rely on the understanding she had been led to adopt.

Extracted reasoning

It could not be required of the plaintiff to understand the notion of a 'temporary retirement supplement' as excluding any state benefit under LMEDA merely because her second-pillar benefit was taken as capital rather than as a pension.

Key legal question

Whether the plaintiff suffered compensable damage because she received interest on the capital paid instead of a pension.

Extracted holding

No compensable damage was shown on that ground.

Extracted reasoning

The plaintiff could not complain of prejudice based on the interest that accrued on the capital she had received and could use instead of a pension.

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