Bill C-27 and other information from the CUPW Lower Mainland Retirees Organization December 11 2016
- Bill C-27: Bill C-27 a Federal piece of legislation, which could mean bad things for our Canada Post Pension , is still awaiting second reading in Parliament. This Bill would allow Canada Post (after some unclear consultation process) to change our far more secure Canada Post Defined Benefit Pension to a far less secure Target Benefit Pension. Here is a chart outlining what we as retirees currently have with our Canada Post Defined Benefit Pension Plan and the implications of changing it to a far less secure Target Benefit Pension:
Here is a chart outlining what we currently have and what we would have if Bill C-27 is passed:
|What we have currently under the Canada Post Defined Benefit Pension Plan||What Bill C-27 could bring|
|Retirement security||Under the Canada Post Defined Benefit Pension Plan we have a secure retirement. The amount we receive in our pension is not affected if the stock market goes down.
We can calculate the amount we will receive in our pension based on our age, earnings, and our years of service.
We have a secure retirement.
|Bill C-27 permits the employer to change our pension plan to a Target Benefit Pension Plan (with some form of consent).
Under a Target Benefit Pension Plan, the amount we receive at retirement is just a target. It could go down if the stock market goes down.
This means you will not be able to calculate how much money you will receive in your retirement.
|Reducing what retirees currently receives for their pension||Under the Canada Post Defined Benefit Pension Plan it is virtually impossible to reduce the amount a retiree currently receives in their pension.||Under a Target Benefit Pension the amount of money a retiree receives as their pension could be reduced if the plan is in bad shape.
Retirees could go from a secure retirement to a very insecure retirement
|Removing the right to Disability and Survivor’s Pensions||Under the Canada Post Defined Benefit Pension Plan it is virtually impossible to remove the right to a Disability Pension (Medical Retirement) to those who qualify for it.
It is also virtually impossible to remove the right to a Survivor’s Pension to the eligible spouses of a deceased Canada Post Pension Plan Contributor
|Under a Target Benefit Pension Plan the right to Disability Pensions (Medical Retirement) and Survivor’s Pensions could be totally eliminated if the plan is in bad shape.|
|Pressuring individual workers and retirees to leave the pension plan||Under the Canada Post Defined Benefit Pension Plan it is virtually impossible to go to workers and retirees one by one and pressure them to leave that plan||Bill C-27 would allow Canada Post to go to individual workers and retirees and totally pressure them to leave the Canada Post Defined Benefit Pension Plan and join the Target Benefit Pension Plan. This will put huge pressure on individual workers and individual retirees.|
|If there is a deficit in the pension plan||If there is a deficit in our Defined Benefit Pension Plan, Canada Post has the obligation of making up that deficit.
But the last going concern evaluation of the Canada Post Pension Plan showed it had a $1.2 billion dollar surplus. A going concern evaluation assumes the plan is going to continue in to the future.
It is true that Canada Post has $5.9 billion dollar solvency deficit. A solvency deficit only comes into play if the plan winds up.
Rather than introducing Bill C-27, the Federal Government should introduce legislation to exempt the Canada Post Pension Plan for solvency evaluations. All the major pension plans in BC do not have to do solvency evaluations
|If there is a deficit in a Target Benefit Pension Plan , the amount of money future retirees receive will be reduced, and the amount of money current retirees receive could be reduced.
Current and retired members will have all the risk if there is a pension plan deficit. Their pension will be affected.
- Bill C -27 letter from BC FORUM. Here is a letter from the BC Federation of Union Retirees (BC FORUM) on Bill C-27.
“The Honourable Bill Morneau
House of Commons
By mail and email
Dear Minister Morneau:
Re: Bill C-27
I am writing on behalf of the B.C. Federation of Retired Union Members (BC FORUM) to express our strong opposition to Bill C- 27. BC FORUM is urging you to immediately withdraw this Bill.
BC FORUM represents thousands of retired and active workers from unions affiliated to the BC Federation of Labour. Many of our members are retired and have a wide variety of workplace pensions. Unfortunately some of our members have retired without any workplace pensions.
It is a result of this real lived experience that we are opposing Bill C-27. Our members who have retired with a Defined Benefit Pension Plan have a more secure and dignified retirement than those who did not retire with such a plan. If passed and enacted, the provisions of Bill C-27 will have a negative impact on some of our current members and future retirees.
BC FORUM is concerned about Bill C-27 for the following reasons:
– Virtually all plan risks would shift from employers to active and retired members. This puts an undue burden on both current workers, and retirees.
– Permitting employers to encourage individual DB plan members to surrender their benefits has the potential to divide retirees against active members. This will not help retirees live in dignity. It will create a stressful situation for retiree that is not helpful for either their physical or emotional health.
– Even if the DB plan endures, individual transfers may alter the plan’s demographics, and eventually jeopardize the stability and sustainability of the DB plan. Again, this could jeopardize the ability of some of our retirees to have a safe, secure and dignified retirement.
– Benefits may be reduced on both a going-forward and retroactive basis, including pensions-in- pay to retirees. If this happens the ability of some of our members to pay rent, buy food, and purchase prescriptions would be adversely affected
BC FORUM has read a letter our now Prime Minister The Honourable Justin Trudeau wrote to retirees, prior to the federal election, stating that “[Defined Benefit Plans] which have already been paid for by employees and pensioners, should not be retroactively changed into [Target Benefit Plans].” Bill C-27 would permit precisely this retroactive change. We are strongly urging that the Liberal Government live up to this promise.
It is for all these reasons that BC FORUM is urging you to immediately withdraw Bill C-27.
In conclusion, thank you for taking the time to read this letter. BC FORUM is willing to discuss this issue with you.
BC Federation of Retired Union Members
- Bill C-27 — please take action. Many of you have contacted your Member of Parliament and urged her/him not to support Bill C-27. It would be great if you could contact Federal Finance Minister Bill Morneau and urge him to immediately withdraw Bill C-27. His email is Bill.Morneau@parl.gc.ca. His mail address isBill Morneau, House of Commons, Ottawa, Ontario, K1A 0A6.
- B.C. Medical Plan rebates: In order to get a rebate from Canada Post for 50% of the BC Med payments you made in 2016, you need proof that you actually paid for BC Med rebates in 2016 and information as to how much you paid. The best way to do this is to phone the provincial government’s Revenue Services Department at 1-877-405-4909 and ask for a statement of your 2016 BC Medical service Plan payments. This is free. It may take up to 6 weeks to receive.
- Have a wonderful holiday season!!!