An article written by Canadian Federation of Pensioners President, Bob Farmer, recently appeared on the National Pensioners Federation website.
The opening paragraph paints a nightmare scenario for a pensioner and their pension cheque…
“Imagine the following scenario. You are sent a letter from your employer of ten years ago. In the letter, your employer explains that it has reconsidered the salary you were paid ten years ago, and has decided in retrospect that it was too much. To be clear, there is no claim of payroll error that has just come to light. Rather, the employer has changed its mind about your salary and is demanding a rebate from you.”
Bob’s article goes on to discussion this scenario plays out for pensioners, the challenges facing Defined Benefit Pension plans today, the state of undergoing underfunding of these critical retirement plans and the lack of protection for such plans when a company sponsor gets into financial issues and enters CCAA or Bankruptcy proceedings in Canada.
For more of the article on the NPF website, click here.