This is an archive of news stories and research from the National Union of Public and General Employees. Please see our new site - https://nupge.ca - for the most current information.
"It is time to fix the problems of workplace pension plans for Canadians."
Toronto (27 September 2010) – The joint federal-provincial pension reform process is not moving fast enough slowly and should include a national forum of regulators and stakeholders, according to a study released last week from the C.D. Howe Institute in Toronto.
Seeking Certainty in Uncertain Times: A Review of Recent Government-Sponsored Studies on the Regulation of Canadian Pension Plans, by pension experts Bob Baldwin and Brian FitzGerald, reviews the findings of three provincial inquiries into the problems of workplace pension plans and make recommendations for reform.
Ontario Nova Scotia and Alberta and British Columbia conducted reviews between November 2008 and January 2009. Each examined concerns such as declining coverage, deficits of defined benefit, the lack of a common legal framework, as well as other legal and regulatory issues impacting on workplace pensions.
"It is time to fix the problems of workplace pension plans for Canadians", the authors point out. While Canadians with incomes below half the average wage are generally well served by government plans (CPP/QPP), those with moderate and higher earnings depend on workplace plans and/or personal savings to avoid substantial drops in their living standards in retirement years.
The Ontario report suggests letting large pension plans and funds offer investment and administrative services to small organizations and individuals, and raises the possibility that a proposed provincial pension agency would do likewise. The Alberta-British Columbia and Nova Scotia reports propose new provincial pension plans with differing opt-in and opt-out features. The authors believe these ideas deserve serious consideration.
Other important areas of reform include delineating the difference between “promised” and “target” benefits; making funding rules more consistent; and regulatory and governance changes.
The authors praise the work of the three provincial reviews for the work they have done and the ideas they have articulated. “With that starting point in mind, jurisdictions and other stakeholders now need to work together to create a national forum that focuses on resolving the problems of workplace pension plans.”
One of the reports authors, Bob Baldwin, Pension is the former Director of Social and Economic Policy for the Canadian Labour Congress.
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE
More information: