Protect Your Pension!
Retirement Security for Everyone!




Sisters and Brothers,

The Federal Government continues to subtly erode our pension security and as such, we must make our voices heard. Our organization is working together with other Unions on this issue and we fully support and endorse this initiative as put forth by the Canadian Labour Congress. Please take a moment to send a message to your local MP on this very important issue. The following will assist you in our efforts to convey a strong and collective message to our Federal Politicians.


D.J. Shewchuk

Pensioners demand government ACTION NOW!
Over 2000 pensioners, terminated and disabled employees of Nortel Networks rallied in protest on Parliament Hill today with demands for 'Justice' and 'Action Now' on their pensions, severance and disability benefits. Over 2000 more supporters from across Ontario and Quebec came by the busloads to voice their own concerns for lack of pension security in Canada. Many had also been at the demonstration at Queen's Park two weeks earlier, which the CAW helped organize on behalf of their Nortel workers.

With more than 2000 companies under bankruptcy protection across the country right now, protesters were demanding change to the Bankruptcy and Insolvency Act in order to protect pensioners, terminated, and disabled employees who must now stand in line with bondholders and suppliers who can be insured against their risks.
  Learn more...

Teamsters Canada fighting for Pension Reform
Teamsters Canada appeared before the House Committee on Finance to discuss Pension Reform on April 23rd. We made our position very clear. After 40 years of Regulation and more than a decade of unprecedented economic growth, it is unforgivable that there is a pension plan crisis in Canada. Unlike companies seeking further deregulation, we are supporting greater controls on pension because nothing will change unless fundamental change to the regulatory regime underpinning pension are made; changes that support pensioners and workers, and stop corporate greed.
  Learn more...

 Letter to all TCRC Division Secretary Treasures... 

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bullet Pension changes would increase risk for workers...
bullet Joel Harden interviewed about the pension crisis...
bullet NDP demands government action on pension protection...
bullet Federal pension forum draws packed house...
bullet Teamsters take part in the consultations on pension reform...
bullet Unions balk at cries for pension reform...
bullet Canada needs laws to protect private pensions...
bullet TCRC submission to Department of Finance in response to Pension Plan Consultation Paper...

 We Need Your Help!
At this time it would be very helpful if each member contacted Ted Menzies, Secretary to the Federal Finance Minister Jim Flaherty.

Please take a few minutes to take part in the important campaign.

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TCRC’s concerns in the review of the Federal Pension

Brothers and Sisters;

The following are the TCRC’s foremost concerns in the present review of the Federal Pension Benefits Standards Act (1985)

  1. The present Federal Pension Benefits Standards Act (PBSA) 1985 should be strengthened to better protect employee pensions rather than weakened to favour corporations.
  2. At the present time the PBSA (1985) allows a corporation to defer paying a pension plan deficit for up to five years and in addition up to ten years with certain restrictions. Proposed changes would allow corporations to defer pension deficits for ten years without any restrictions whatsoever. Employee representatives, including unions, ideally want to maintain the present legislation. However, if the legislation is changed we are requesting that all pension plan members must authorize any deferment of pension plan solvency deficit payments beyond five years.
  3. Often when a pension plan is wound up a company is going out of business. If this is the result of a bankruptcy payment of debtors has precedence over payment to a pension plan which has a deficit. Changes should be put in place that will give pension payments preference over payment of all other debts. In addition to this proposed changes would allow a plan sponsor to defer a deficit for five years after a pension plan is wound up. We are against allowing a plan sponsor to have five years to repay a pension plan deficit. Simply put, it may be hard to locate a plan sponsor after five years. If a pension plan is in deficit all monies held by a corporation should be used to repay a pension plan deficit at the time of the pension wind up.
  4. It is imperative that we have stronger legislation that would strictly limit plan sponsors taking contribution holidays especially when a plan has a deficit. The financial goal of every pension plan should be to reach fully funded status as soon as possible.
  5. Presently the Income Tax Act limits the level of pension surplus threshold to 110%. The Income Tax Act should be changed to allow at least 120% pension surplus threshold. This would provide a financial cushion should the plan incur future funding problems.
  6. The government should consider limiting the amount that pension plans are allowed to invest in equities and other risky financial ventures.

Yours in solidarity,
Mike Wheten

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