The defendant corporation established a private pension system "for the purpose of promoting the welfare of the officers and employees" of the institution, and to "encourage long and faithful service." The terms and conditions of the system were distributed to all employees. They provided in substance, that all officers and employees who had attained the age of 65 years and who had served the institution honorably for twenty years would be entitled to a pension the amount of which was to be calculated by past salary and the number of years of service. The plaintiff was retired on a pension in 1929. In 1930 the defendant corporation attempted to decrease the amount of the pension and the plaintiff brought suit. The court held that the pension scheme constituted a binding contract and was not merely a gratuitous gesture on the part of the defendant to its employees. Schofield v. Zion's Co-operative Mercantile Institution, (Utah 1934) 39 P. (2d) 342.
CONTRACTS - CONSIDERATION - EMPLOYER'S PENSION PLAN,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol34/iss3/15