Are retiring employees eligible for severance pay?

Does an employer have to pay severance to retiring employees with five years of service or more if it does not have an actuarial reduced pension plan?
By Tim Mitchell
|Canadian Employment Law Today

Question:

I have a question regarding paying severance to retiring employees in Ontario, as some sources say we do have to pay severance to these employees and other sources indicate that we do not. I have been told that we must pay severance to retiring employees, with five years of service or more, if we do not have an actuarial reduced pension plan. Our company has a deferred profit sharing plan, but not a pension plan and therefore we have been advised that we do have to pay severance. Could you please clarify, if this is in fact true?

Answer: