On May 19, 2017, the Government of Ontario shared a preliminary view of their intentions to modify the requirements for Pension Plan solvency funding with the intention, after further consultation and assessment, with the intent of bringing forth legislation as early as this fall.
This affects the amount of money that Pension Plan sponsors will have to put into Pension Plans, and affect pensioners the most when a Pension Plan sponsors gets into financial trouble. Sears Canada is a perfect example of this issue in todays news.
It is fair to say that although the preliminary view of legislation was not as damaging as we feared it might be, it certainly would weaken the position of pension plan members. Essentially the initial proposal would result in large savings for plan sponsors, by reducing their funding requirements from 100 to 85%. Minor improvements to the Pension Benefit Guarantee Fund (PBGF), would result in a large number of our members receiving a reduced pension in the event of a windup.
The announcement also proposed a PBGF guarantee coverage of $ 1500/month (from the current $1000/month). Pensioners whose pension is $ 1500/month and whose plan is 60% funded would receive their full pension; in a wind-up. Under similar assumptions, but if you had a pension of $3000/month, your pension would be reduced to $ 2400/month; through a combination of the funds in the pension plan and the PBGF.
What are we doing? We’re holding our own Advocacy Day Oct 17th!
One of the most effective tools we can use to influence the Government utilizing a proven tool, a concept called Advocacy Day. We are most fortunate to be sponsored by Sophie Kiwala, Liberal MPP for Kingston and the Islands.
Advocacy Day is an opportunity to tell MPPs directly the impact of the changes from the pensioners who are being directly impacted by the changes.
We’re sponsoring a breakfast at Queens Park and have invited all the MPP’s and other influential people in staff jobs to attend. We’re setting up key one-on-one meetings with individual MPP’s during the day to put forward our position.
This is a key event to allow us to speak directly to the MPPs who are making these important decisions.
Looking to help out; email us at firstname.lastname@example.org