Letter To Finance Minister Bill Morneau From CUPW Lower Mainland Retirees Organization RE: Bill C-27
This is the letter that the CUPW Lower Mainland Retirees Organization sent to Finance Minister Bill Morneau re Bill C-27. I am hoping that lots of people will send a letter or an email to Bill.Morneau@parl.gc.ca and your MP telling themto withdraw Bill C-27.
The Honourable Bill Morneau
House of Commons
Dear Finance Minister Morneau:
Re: Bill C-27
I am writing to you on behalf of the Canadian Union of Postal Workers Lower Mainland Retirees Organization to ask you in the strongest possible terms to immediately withdraw Bill C-27.
All the members of our organization are either retirees from Canada Post or surviving spouses of postal workers. We are all part of the Canada Post Defined Benefit Pension Plan.
Our members are extraordinarily worried about this legislation, and any possible change to our pension plan. All of us have made significant financial contributions to the Canada Post Pension Plan, through our pension contributions.
When we retired, we retired knowing that we would have a Defined Benefit Pension. This information not only allowed us to retire, it also helps us have a secure retirement. We can make plans, afford housing, purchase food, and have some dignity. Furthermore, it allows us to spend money in our communities which has a multiplier effect for the overall Canadian economy.
The information about Bill C-27 has thrown many of our members in turmoil. They are incredibly upset and stressed over the possibility that their pension income will be changed.
The provisions of Bill C-27 which would permit Canada Post to encourage individual DB plan members to surrender their benefits will divide us. We don’t need that.
Our members are very concerned that if our DB plan manages to endure, individual transfers may alter the plan’s demographics, and eventually jeopardize the stability and sustainability of our DB plan. This has the potential of directly affecting our retirement security.
Members of the CUPW Lower Mainland Retirees Organization know that under a Defined Benefit Pension Plan our already accrued benefits are legally protected. They are anxious about the reality that under a Target Benefit Pension Plan our already accrued benefits are not legally protected and may be retroactively reduced.
Members of the CUPW Lower Mainland Retirees Organization have been keeping a close eye on the health our Canada Post Pension Defined Benefit Pension Plan. We know that as of December 31, 2015, in the all important going concern valuation, our pension plan had a $1.2 billion going concern surplus.
We know that our Canada Post Defined Benefit Pension Plan has a significant solvency deficit. But, a solvency deficit only comes into play when the plan winds up, and we see no indication that the Canada Post Pension Plan will be winding up in the near future. This belief is buttressed by the knowledge that your Government has said that the privatization of Canada Post is not going to occur in the near future.
Our organization is based in B.C.’s Lower Mainland. As such, we connect with other retirees and/or retiree’s organizations. We know that the Defined Benefit Pension Plans for public sector B.C. retirees are not required to undergo a solvency valuation. For us, the solution is not to enact Bill C-27, but to exempt the Canada Post Pension Plan from the requirement to do a solvency valuation.
The CUPW Lower Mainland Retirees Organization is also seeking clarification on what constitutes consent from retirees to change our Defined Benefit Pension Plan to a Target Benefit Pension Plan. We are asking that you clarify this in writing.
Our organization previously circulated now Prime Minister Justin Trudeau’s letter Trudeau’s which made it clear the accrued pensions and benefits of the employees and retirees cannot be changed retroactively. We cannot understand why your government is backing down from this promise.
Furthermore, from the Liberal’s own website promised Canadians a more secure and dignified retirement.
Bill C-27 does not provide Canadians with a more secure and dignified retirement.
In conclusion, the CUPW Lower Mainland Retirees Organization is asking you to immediately withdraw Bill C-27.
for the CUPW Lower Mainland Retirees Organization
cc. Prime Minister Trudeau
CUPW Lower Mainland Retirees Organization