June 19th, 2014

Risky Conservative pension scheme puts retirement security at risk

The consultation period hasn’t even closed, and it’s already clear that the Conservatives’ latest pension scheme is putting the retirement security of thousands of workers at risk. An update mailed to Canada Post pensioners reveals plans to shift greater risks to workers and retirees.

“People are very worried that this pension scheme would put previously secure pensions at risk, even for those already in retirement,” said Murray Rankin, NDP Critic for Pensions. “The Conservative plan will clearly encourage crown corporations and companies in the federal sector to weaken the pensions of their workers.”

A report to members, received by Canada Post employees and pensioners, makes it clear that the crown corporation plans to make use of the Conservatives’ new pension scheme by shifting from a secure defined benefit plan to a riskier target benefit scheme. Workers and retirees would be at risk of benefit reductions from plan shortfalls.

“The Conservative plan would let federally regulated companies and crown corporations break pension promises made to workers and retirees,” said Alexandre Boulerice, NDP Critic for Labour and Canada Post. “The Conservatives are intent on major cuts to Canada Post – first home delivery, and now the pensions of its workers.”