Pensions and Retirement Security

“A great demographic divide exists between younger Canadians and those who are nearing retirement or already there. Younger Canadians clearly lack confidence in the viability of public and private pensions in the future, while older Canadians are much more confident.”  - Nik Nanos of Nanos Research

Public sector pensions are paid for by the deferred wages of public employees throughout their careers and private sector workers deserve the same opportunity to protect themselves in retirement.

Most Canadians are worried about their retirement security. NUPGE is pressing the federal government to hold a national summit with a series of radio ads launched this week in the nation's capital.

Deal comes at the price of an acknowledgment that the claims of Nortel pensioners, former employees and employees on Long-term Disability are unsecured, and rank in equal priority to those of all other unsecured creditors, including the bondholders.

Almost one third of Canadians aged 35-54 expect to be working in their retirement years.

Pension funds claw back from losses caused by the economic crisis.

"When you attack people's retirement savings, you are asking for the fight of your life and I think it would be a most unwise thing for any political party to do.”

Retiring boomers leading downward trend

Rosy outlook portrayed by Calgary professor does not stand up to research by pension expert Bob Baldwin.

About 1,000 pensioners from paper mills in all three provinces stand to lose up to 40% of their modest pensions when Fraser Papers goes into bankruptcy.

Abitibi, Nortel and CanWest workers need action now: says NDP

Canada's finance ministers are doing Canadians a grave disservice by pretending that no real crisis exists within our failing pension system.

(16 Dec. 2009) - 'We need a National Pensions Summit that provides Canadians from all walks of life with an open forum to fairly explore and assess the viability of all options designed to improve retirement security for all Canadians.'  - James Clancy.

Pension fund revenues exceeded expenditures by $10.6 billion, representing first positive cash flow since the second quarter of 2008.

CPP benefits increase by 0.4 percent: 2010 Yearly Maximum Pensionable Earnings (YMPE) set at $47,200

Proposed legislation deals with less controversial issues before more difficult matters to be dealt in further legislative changes planned for 2010.

Liberals would also provide workers the opportunity to have CPP take over the investment of their pension plan in the event their employer goes bankrupt.

B.C. and Alberta governments prefer Ottawa take the lead in pension reform but are prepared to go their own way should the federal effort fall short.

"It begins with disclosure. Investors have a right to clear and comprehensive disclosure on material environmental, social and governance issues. We will be working with Northwest & Ethical to promote change using the tools of shareholder engagement."  Larry Brown

Another example of corporate greed – 72 Nortel executives will receive a total of $7.5 million US on top of their current salaries in 2009

Ottawa (25 November 2009)—Canada’s Old Age Security system needs improvement in order to help ensure the economic security and dignity of Canadians in retirement, says a new report released today by the Canadian Centre for Policy Alternatives (CCPA).

“A supplementary pension plan is needed to give middle-income Canadians without workplace pensions a better crack at securing a comfortable retirement”: Keith Ambachtsheer

$5.4 billion of the increase comes from investment income, reflecting a 4.6 per cent rate of return over the past six months

Of total pension assets at the end of 2008, social security comprised 7.6 percent, workplace plans 58 percent and individual registered savings plans 34.4 percent.

The National Union of Public and General Employees (NUPGE) is encouraging all Canadians to get involved in the Canadian Labour Congress (CLC) campaign to transform Canada's pension and retirement income system.

'It’s time to consider expansion of our public universal workplace pension plan, the CPP.' - Joan Jessome.

"Presently, the gap in CPP pensions between males and females is narrowing even if it is not expected to disappear completely."

Permission must be first given by plan members to extend the recovery time

“All these changes are positive. But not one of them addresses the current and most significant problems we’re facing – the lack of pension protection and retirement security for Canadians” Larry Brown, NUPGE National Secretary-Treasurer

The average funding level for OECD defined benefit pension plans went up from a 24% deficit at the end of 2008 to an estimated 18% deficit by June this year.

The limited protection is the same as what Quebec government offered all pension plans in the province in January 2009.

Legislation will allow an employee who meets pension plan retirement criteria to continue working, and accrue additional benefits, while receiving pension benefits.

Average estimated solvency ratio of federally regulated DB pension plans at June 30, 2009 was 88 percent

The Netherlands (80.5) and Canada (76.2) scored highest in this index due to the level of minimum public pension and a relatively high net replacement rate of income for median income earners.

Only 30 percent of women have a formal financial plan to meet their retirement goals

'Only 38% of paid workers have workplace pensions.'- Monica Townson.

The Human Resources Council for the Voluntary & Non-profit Sector is conducting a confidential survey which may be of interest to individuals aged 45+ planning to retire or make other work changes, or who are already retired.

"The contractual retirement age and associated post-employment benefits are cornerstones of our collective agreement, which has supported Air Canada pilots' careers for decades."

Old Age Security pension, paid to people 65 years of age and over, will remain unchanged at $516.96 per month

The dream of 'freedom 55' will recede to a new reality of 'freedom 70' for many Canadians if the Conservatives get their way, says NUPGE president James Clancy.

'We support your position that the best fix to the current situation lies in expanding the Canada Pension Plan (CPP) and agree with your hesitations about the effectiveness of proposals for new provincial or inter-provincial pension plans.' - Larry Brown.

Ontario is asked to change legislation to permit the transfer of pension assets to the Ontario Municipal Employees Retirement System (OMERS).

Labour movement is critical of the proposal because the supplemental plan wouldn't be mandatory and doesn't require employers to match employee contributions.

Retirees point out that they are forced to stand in line along with bondholders in order to retrieve the retirement savings and future disability payments Nortel promised before it went bankrupt.

This was the third consecutive quarter that pension funds experienced a decrease in value.

Three quarters of workers in the U.S. say they have less than a complete understanding of their retirement plan

Canada's banking regulator should license and approve all financial instruments available to investors in the country, even if they originate in the U.S., CCPA report recommends

Increase comes primarily from a 7.1 percent return on investment income during first quarter of fiscal 2010

Larry Brown, NUPGE's national secretary-treasurer, says the Harper government is misleading Canadians on pensions issues. Instead of responding effectively to the crisis, the government is stalling and even moving backward, he argues.

Average settlements of $16,000 now being made by Saskatchewan government.

“Hundreds of workers are joining the union determined to stand up to this unacceptable attack on their pensions.”

Sets precedent likely to undermine pension plans across the country.

Pension plans must permit the union to appoint a person in accordance with the union’s constitution instead of providing for a person to be elected by the active members. 

Mandate to provide ongoing advice to the government pension reform proposals and keep the government informed on stakeholder viewpoints.

“This ‘pension factor’ is particularly powerful for improving the economic security of vulnerable older households - women and members of racial/ethic minority groups,”

Fat-cat pensions in the public sector are a myth, says the TUC.

Losses renew PSAC’s call for joint trusteeship of their members’ pension plan and an end to rewarding of bonuses to investment fund managers

Report by the UN Principles for Responsible Investment finds that asset owners and investment managers have increased their commitment to Responsible Investing in the wake of the economic crisis.

Study shows life expectancy at age 65 has increased from 14 to 18 years for males and from 18 to 21 years for females.

Deal provides moratorium on funding the airline’s $3 billion pension shortfall for 21 months and averts Air Canada from seeking bankruptcy protection.

"It was reassuring to hear the OECD state so frankly that an effective pension system is not only socially necessary, but also one of the required responses to the economic crisis," says Larry Brown, NUPGE Secretary-Treasurer

'No wonder the most enthusiastic endorsements have come from employer oriented think tanks.'

Instead of getting behind ill-conceived Alberta /British Columbia (ABC) plan, western premiers should use their clout to call for a national pension summit

'They lost $24 billion and they wiped out the last four years of contributions in that loss.'

Public sector workers pay 8% to 9% of their income to finance public pension plans, far more than the 3% to 5% contribution rate for other workers with pensions. - NUPGE's Larry Brown.

The defined benefit pension plan remains intact with benefits protected and no other concessions were made.

Unlike funding relief measures adopted by other jurisdictions, workers have no say but assume the risks to their pension plans if the current market downturn continues for an extended period

'Governments should underwrite the pension plans of Canadian workers because to do anything else would be unfair and economically disastrous.' - Larry Brown, NUPGE.

5.9 million Canadian workers belong to workplace pension plans representing only 32 percent of the workforce

Former Ontario Superior Court Judge James Farley, who oversaw Air Canada's 2003 bankruptcy, will seek a solution on the company's pension and other issues

“This is really outrageous and it understandably offends people,” said Clancy. “How can they possibly justify these bonuses when the fund lost over $23 billion dollars last year? That defies common sense.”

CPP Investment Board says long-term outlook remains stable despite setbacks caused by turmoil in international economic markets.

'The private sector has failed miserably.... The only way to ensure that all Canadians are able to retire with security and dignity is by expanding Canada's public pension system.' - James Clancy.

AbitibiBowater granted permission under the Companies’ Creditors Agreement Act (CCAA) to suspend payments on its unfunded pension liabilities.

Air Canada appears to be headed for a showdown with its unions over the airline’s underfunded pension plans.

CEP asked the court to force the company to respect an agreement that allows employees with 20 years of service to retire at age 57, instead of 58

Criticism of CPP investment Board as it plans to provide managers with pay bonuses after pension plan lost $13.8-billion in last year

Fifteen universities have some form of defined benefit plan with combined assets of over $13 billion

Employers using crisis to push for looser regulation of how pension workers' money is managed.

"The financial crisis is not the fault of retirees, and they shouldn't have to shoulder a disproportionate amount of the burden because the province's pension guarantee fund is underfunded"

Physicians for a Smoke-Free Canada says Canada should follow Norway's lead to exclude tobacco holdings from public funds.

NSGEU critical of province for not working with union to develop best way to plan for the future.

First proposed in its ill-fated November 2008 Economic and Fiscal Statement, the federal government implements temporary solvency relief for federally regulated pension plans facing large funding shortfalls.

Government introduces temporary measures but withstands pressure for short term fixes to deal with the financial crisis, according to OPSEU.

(20 March 2009) - The second of two commentaries by James Clancy, national president of the National Union of Public and General Employees (NUPGE), on the challenges facing pension plans in Canada. Read first commentary

(19 March 2009) - The first of two commentaries by James Clancy, national president of the National Union of Public and General Employees (NUPGE), on the challenges facing pension plans in Canada.

Shareholders at all of Canada's ‘Big Five’ banks have won the right to vote on top bankers' compensation, reflecting growing investor frustration with executive pay.

Funds valued at $869 billion compared to $951.7 billion the previous quarter.

The Ontario Public Service Employees Union responds to the report of the Ontario Expert Commission on Pensions.

Caisse president admits making unsafe investments wiping out one quarter of the entire assets of Canada's largest pension fund manager.

Shareholders eager to vote on the “say on pay” issue will have ample opportunity to do so this proxy season.

NUPGE to partner with Ethical Funds to encourage corporations operating in the Alberta oil sands to assess and disclose social, environmental, and financial risks of their oil sands exploitation.

Workers are rightly worried about the fall in the value of the private pension savings and governments need to step up their efforts to provide social safety nets, warns OECD

The five unions representing Air Canada workers are calling on the Office of the Superintendent of Financial Institutions (OSFI) to require the airline  to fund its pension plan, before being permitted to wind-up its holding company

Canadian mutual funds still most commonly held retirement investment, despite highest fees in the world which negatively impact on long-term savings potential.

60 vs 65 - Applying early for CPP can mean more money in the bank - the decision is a choice between receiving your normal benefit starting at age 65 or starting earlier and receiving a smaller monthly amount 

Proxy vote records highlight greatly increased deference on key environmental, social and governance issues

Dispute over pension benefits dates back to 1980s.

Workers are conflicted about their retirement prospects Nearly half of Canadians expect to work past age 65 for ‘lifestyle reasons’, while about the same number site financial reasons

'The PSPP is invested conservatively and has weathered the global economic downturn in reasonably good shape.'

Canadian pension plans suffered the steepest annual decline on record as global equity markets continued to plunge in the fourth quarter of 2008

The appalling spectacle of Nortel's older workers and retirees facing the potential loss of their pensions is not just heartbreaking, it’s a social and economic disaster unfolding in slow motion.

'This is very welcome news for workers in Quebec, but falls short in guaranteeing pensions,' notes NUPGE National Secretary-Treasurer Larry Brown.

The federal Finance Minister will push ahead with the creation of a long-debated national securities regulator, despite strong opposition from Quebec and Alberta

The issue is important to workers because so many depend on sound financial markets to ensure healthy pension funds.

National Union policy paper outlines steps to protect and enhance the retirement security of Canadians during the current economic crisis.

The federal government has released a discussion paper on improving the framework for federally regulated private pension plans.

Sponsors of Both Defined Benefit and Defined Contribution Plans Face a Challenging 2009

Despite weak economic conditions and poor market returns, most companies have taken only small steps to guard against defined benefit (DB) pension risk, particularly Canadian plans, according to a Hewitt Associates survey.

The CCPA has kicked of 2009 with today's release of A Banner Year for Canada's CEOs by Hugh Mackenzie, who found that Canada’s best paid 100 CEOs tallied one billion in average total earnings in 2007 – a historical first.

Proposed legislation would allow businesses to spread their solvency payments from five to 10 years with the consent of active members or their collective bargaining agent and retired plan members

The pensions systems of both provinces could suffer if the ‘lowest common denominator’ philosophy of TILMA was imported into pensions

Social Development Canada announces 2009 benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS).

In his widely criticized fiscal update on November 27, federal Finance Minister Jim Flaherty proposed that federally regulated pension plans will have twice as much time—10 years instead of five—required for solvency payments.

Economic downturn may persuade older workers to delay full retirement

Ontario Expert Commission on Pensions releases report

Union activists from across Canada meet in Toronto

 NSGEU says Finance Minister’s comments were 'premature'.

Panel calling for a new province-wide pension plan administered by an independent agency

Government to create province-wide DC plan

Working Session to provide a combination of education and information sharing on key pension issues at the national and provincial levels

The value of Canadian pension plans suffered the largest quarterly decline in a decade as the credit crisis caused equity markets around the world to drop.

One third of all NBUPPE members eligible for pensions within five years

While many Canadian employers face retirement levels of 20% or more over the next five years, most admit that they are not fully prepared to deal with this important issue.

Canadians have lost more than 80 billion dollars since March 31

New Study Says Mainstream Investors are Assessing Labor and Human Rights Sustainability Risks for the First Time

New Study Says Mainstream Investors are Assessing Labour and Human Rights Sustainability Risks for the First Time

DB plans can deliver the same retirement income at 46% lower cost than DC plans

CPP Fund valued at $127.7 billion as of June 30, 2008

Value of pensions plans drop in 4thQ 2008 following six consecutive quarters of gains

Nearly 30 percent of Canadians nearing retirement are less than confident their retirement savings will suffice to maintain their standard of living, according to data from Statistics Canada.

The case, Elaine Nolan, et al. v. Kerry (Canada) Inc. et al., will be watched closely by unions and employers alike

A new research studyfinds that a standardized international policy on fee disclosure would help pension plan members become better informed consumers of DC plans

OPSEU seeks input from members and retirees on how the surplus in the pension plan should be allocated

The consideration of environmental, social, and governance (ESG) issues into institutional investment will be major trend over the next five years

SHARE report sheds light on how mutual funds exercise their powerful voting rights to maintain the status quo in corporate Canada

More than $900 million loss in investments rocked by the U.S. credit crisis

Union presents brief to Nova Scotia Pension Review Panel calling for greater control over employers

Regulations to allow the use of letters of credit to secure pension fund solvency deficiencies

Protects wages and vacations benefits of workers whose employers go bankrupt

Only 38.1% of paid workers had a registered pension plans in 2006

Damages claimed for Nortel's 'failure to provide to their employees reasonable notice of the changes to the pension plan.'

The biggest corporate takeover in Canadian history – the purchase of BCE Inc. by a group led by the plan

Increase is 0.7 percent over the previous quarter

Head of Ontario Teachers Pension Plan calls for National Pension Reform Summit

Tthe ability of Canadians to put away adequate retirement savings is in jeopardy: C.D.

France's government wants to extend the period of pension contributions from 40 to 41 years.

The biggest corporate takeover in Canadian history hits a roadblock

Retirements have been increasing rapidly in the federal public service as the leading edge of the baby boom generation calls it quits

Many of the DC plans and RRSPs available to Canadians 'will not contribute meaningfully to an adequate retirement income'

Plan sponsors will be required to fully fund any deficits on wind up

While pension risk continues to be a 'hot button' issue for many organizations, a recent  survey reveals that many Canadian CFOs are less likely to see the situation as a long-term crisis

OPTrust pension plan expected to soon eliminate the Plan’s current funding deficit and have a surplus, based on double-digit returns from 2003 to 2006

The decline of DB pension plans in Canada is being exacerbated by federal laws and regulations that foster employer underfunding

'It’s outrageous that after three tries, the government claims it still isn’t ready to make this modest protection a reality.' - Larry Brown

Legislation designed as an incentive for the Quebec’s large number of baby boomers to keep working pass 55 to ease an impending labour shortage.

Plan facing a $12.7 billion shortfall, about 11 percent short of meeting current pension obligations.

Breakthrough means plan will be in place by April 1, 2010

AMO should treat paramedics the same as police and firefighters

Employers without pension plays should be asked to pay higher premiums

Value of all pension funds in Canada amounted to $957.2 billion for the three-month period ending September 2007

First-ever sharehoder votes on 'say-for-pay' at Canada's big banks get strong support

SRI now growing at a much faster pace than the broader universe of all investment assets under professional management

Slightly more than two million people between the ages of 55 and 64 were employed in 2006—a 43% increase over 2001 figures

Top 100 executives averaged $8,528,304 in 2006

Budget proposes to increase income exemption under the GIS program to 100 per cent of the first $3,500 of employment income

NS government announces three-person Expert Committee to review Nova Scotia’s Pension Benefits Act

PEIUPSE President Shelley Ward fears province may try to use pension reserves to finance public-private-partnerships (P3s)

Employment has increased 10 times faster among older workers aged 55 and over than among workers aged 25 to 54

Appeal in a 2007 decision of the Ontario Court of Appeal to Court to determine the appropriate conduct of employers managing employee pension funds

Legislative Framework Governing Pensions. How Pensions are Funded.

Seventeen research papers  on topics ranging from the funding, taxation, and governance of pension plans, to comparative models of risk-based industries and guarantee funds.

Cannot 'allow the government to hijack' the pension rights of 125,000 Albertans 

Probation and parole officers, sheriffs, highway safety officers and conservation officers should be given the same pension accrual rate as police, correctional officers and paramedics

Growing support among investment management firms for shareholder proposals that address excessive executive compensation

Social Development Canada announced in December the latest benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS).

'Poor equity performance in the fourth quarter took its toll on plans’ funded status'

City will invite pension fund investors to consider investing in the revitalization of Toronto’s historic Union Station

Top 100 executives paid $8.5 million compared to average worker's salary of $38,998

Legislation will provide up to $3,000 in wage protection for employees of companies that go bankrupt

'Many seniors are suffering.' - Carol Furlong

How Much Pension Will an Individual Need?

Pensions could be undermined if TILMA philosophy influences review, says NUPGE's Larry Brown

NUPGE's Larry Brown says its time to extend pensions to new members of the workforce

Survey of 69 employers by AON Consulting Inc.

An Overview of Canada's Public Pensions System and Private Retirement Savings

'The legislation ... allows an employer to be selective.' - BCGEU

Two new publications: Pensions are Important & A Brief History of Pensions

Deciding the fate of $30 billion in surpluses confiscated by Ottawa to put on federal deficit

Business lobby group's 'research' on pensions laced with misleading information and false claims

Critical need for a national policy on retirement security, says NUPGE's Larry Brown

Canadian Centre for Policy Alternatives shines a spotlight on obscene corporate salaries

Details won't be released until two unions now at the table negotiate new collective agreements