A man looks over a brochures offering various retirement savings options in Montreal. THE CANADIAN PRESS/Ryan Remiorz

OPINION: Why is the B.C. NDP government abandoning pensioners?

Michael Powell is the president of the Canadian Federation of Pensioners

When governments have to release information they would rather not, they do it on a Friday, on a long weekend in the summer. Just like B.C.’s government did last week.

On Aug. 2, the government released, “A Review of the Solvency Funding Framework under the Pension Benefits Standards Act: Report on Stakeholder Committee Process August 2019.” Friday? Check. Long weekend in summer? Check. Under the radar? Think again.

This report recommends that the B.C. government – an NDP government – should completely alter pension regulations in favour of the pension sponsors and the pension industry. It is entirely focused on reducing sponsors’ obligations to fully fund pensions. It fails to recommend tangible solutions to protect pensioners when companies with under-funded pensions file for bankruptcy.

The government should do the right thing and follow the lead of the federal NDP, which has committed in its election platform to protect retirement savings and put employee pensions at the front of the line if a company goes bankrupt. The federal NDP is also proposing a mandatory, industry-funded pension insurance program to protect and guarantee pensions. The B.C. government should follow suit.

As we have seen from the bankruptcies of Sears, Nortel and others, the impact of insolvency on pensioners is devastating. When Canadian pensioners lose 20 per cent or more of their pension income, there are financial repercussions that impact all of us. In a conservative case, a pensioner could see a 20-per-cent reduction in income, from $30,000 to $24,000 per year, resulting in an annual tax revenue loss of $1,500 to $2,000 per pensioner.

The impact of bankruptcy and pension loss is particularly devastating in smaller communities. It can shift pensioners from leaders and volunteers to leaning on local resources for support. Pensioners contribute to their communities in many ways, particularly as volunteers. When they lose a substantial amount of their income, they cut back on community engagement or seek post-retirement employment. How can they help out at the seniors’ centre or provide transportation for medical treatment when they can’t afford the gas?

B.C.’s 170,000 defined benefit pension beneficiaries and their families should be the most important stakeholders in pension security discussions. But the report issued by the B.C. Ministry of Finance does nothing to protect them. We have seen how companies abandon pensioners, because the law allows them to do so. Pensioners, by law, cannot negotiate to improve or ensure their pensions. Governments have that responsibility.

It’s time for the B.C. government to put pensioners first. On behalf of our 250,000 members, we are calling on Premier John Horgan and his government to put aside this report and act in the best interests of pensioners.

Michael Powell is the president of the Canadian Federation of Pensioners

Like us on Facebook and follow us on Twitter

Just Posted

Fanny Bay Challenge asks visitors to support businesses during highway closure

Community rallies as part of Highway 19A closes for six weeks due to culvert project

Mountainaire Avian Rescue Society monthly update

More than 170 birds and mammals brought to Merville centre in July

Courtenay man acquitted of manslaughter

Court accepts accused Jonathan Billy’s argument of self-defence for 2017 incident

VIDEO: Courtenay woman reunited with missing dog

https://www.facebook.com/113985643290772/videos/2414437362166107/?__tn__=HH-R The Courtenay woman who had lost her dog for more than… Continue reading

Police continue to investigate machete attack

Police have canvassed nearly 200 businesses for video surveillance of the recent… Continue reading

Trudeau vows to stand firm against ‘increasingly assertive’ China

China has accused Canada of meddling in its affairs

Kelly Ellard gets day parole extended for six more months

Ellard was convicted of killing 14-year-old Reena Virk in 1997

New study suggests autism overdiagnosed: Canadian expert

Laurent Mottron: ‘Autistic people we test now are less and less different than typical people’

B.C. hockey player excited to join Humboldt Broncos

Defenceman Sebastien Archambault played last two seasons with Junior B Sicamous Eagles.

B.C. father tells judge he did not kill his young daughters

Andrew Berry pleaded not guilty to the December 2017 deaths

Police watchdog investigating two officers after Langley teen’s suspected overdose

According to IIO, two officers were deployed to help Carson Crimeni but did not locate him before he died

Huawei executive’s defence team alleges Canadians were ‘agents’ of the FBI

eng’s arrest at Vancouver’s airport has sparked a diplomatic crisis between Canada and China

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

On vaccines, abortion, Goop, doctor Jen Gunter says: ‘I have a duty to speak up’

She speaks out on menstruation, the wellness industry and vaccines

Most Read