Share
A win for Unifor activists! The fight is not over, but we can be proud of the work to date.
In April 2014, the Conservative government released a consultation paper that outlined a framework for legislation on single-employer target benefit (TB) pension plans. The proposed legislation would allow Crown corporations and employers in federally regulated sectors to offer single-employer TB plans.
The underlying motive behind the proposal is to allow employers to convert accrued service in defined benefit pensions to TB pension service. Under a TB plan, monthly pensions can be cut when the pension plan is underfunded. This breaks the pension promise and puts a target on the backs of retirees and current employees with DB plans.
Unifor activists launched a campaign to pressure the federal government to withdraw the federal framework for target benefit plans. Unifor activists across Canada have sent more than 1,200 letters to their Members of Parliament, requesting that the government scrap the framework. An additional 800 signatures were gathered for a petition that called on the Harper government to withdraw the proposal entirely.
In February 2015, Kevin Sorenson, Minister of State, Finance, was quoted in Blacklock’s Reporter saying “We will just wait” and, “The time will come” when questioned about plans for the legislation. The go-slow on target benefit plans was reiterated in the 2015 federal budget “The Government also continues to assess a voluntary Target Benefit Plan option for Crown corporations and federally regulated private sector pension plans.”
The federal Tories, concerned about the political consequences of this proposal, likely want to avoid the target benefit pension debate with an October election on the horizon.
Some provinces are moving forward with single-employer target benefit plans. New British Columbia pension rules, effective September 30th 2015, will allow the retroactive conversion of a defined benefit plan to a target benefit plan. Additional details to come.
