"One cannot contribute to a pension plan at the same time one receives benefit payments from a pension plan. In other words, their pension plan contributions are recommenced. The payments that they are receiving as salary come 100% from pilot payroll; none of it comes from the pension plan."
OverUnder, that is correct and is a CRA rule. I am sure that the CRA will be taking a very close look at this remedy ruling, and will be wringing their hands in glee at the prospect of taxing the settlement amount.