Following the termination of a group term life insurance policy for the benefit of retired employees, their former employer (Taxpayerco) may decide to pay, to the retired employee, an equivalent amount ("lump sum") to the death benefit initially provided for in the abandoned group life insurance policy. CRA stated:
[A]ny amount paid to a retiree by Taxpayerco should be included in computing the retiree’s income under either section 5 or section 6 … [as] the payment … arises necessarily from the retiree’s employment with Taxpayerco.
(The CRA summary also referenced s. 6(4))