Justin Trudeau and his Government now target your pension with Bill C-27.
This enactment amends the Pension Benefits Standards Act, 1985 to provide a framework for the establishment, administration and supervision of target benefit plans. It also amends the Act to permit pension plan administrators to purchase immediate or deferred life annuities for former members or survivors so as to satisfy an obligation to provide pension benefits if the obligation arises from a defined benefit provision.
Bill C-27 is designed to allow employers break their pension promises resulting in employees losing their pension.
Trudeau promised to protect pension for all Canadians but is failing to do so.
“CUPE is strongly opposed to Bill C-27, and we are urging the federal government to stop this short-sighted and ill-conceived attack on the retirement security of Canadian workers,” said Mark Hancock, national president of CUPE.
Bill C-27 will allow federally-regulated employers to retroactively change a defined benefit pension promise into insecure “target benefits” by pressuring workers and retirees into surrendering benefit promises they have already earned.
“During the last election, Justin Trudeau clearly promised to protect good, fair defined benefit pensions from being retroactively changed to target benefit plans. Bill C-27 breaks that promise,” said Hancock. “Prime Minister Trudeau must immediately withdraw this extremely irresponsible and mean-spirited legislation.”
The Liberal government’s Minister of Finance, Bill Morneau, tabled a bill this week that would allow Crown corporations and federal private-sector employers to back out of defined-benefit entitlements they agree to.
For those retired and working employees who could be impacted by the change, their retirement benefits could be drastically reduced even though they have paid into the plans for years and budgeted on the basis of what they expected to receive when they retire. Defined Benefit plans require employees to give employees a monthly payment regardless of their investment returns. Accrued benefits are legally protected and cannot be clawed back. While such plans are not as cheap as alternatives such as Defined Contribution plans, they offer workers greater retirement security.
Do you agree with Bill C-27?