The Conservative government is planning to introduce legislation that would allow for the conversion of defined benefit plans to target benefit plans. The legislation would affect federally regulated pensions for workers and retirees at Crown Corporations like Canada Post and Nav Canada, as well as airport authorities, among others.
The change from defined benefit to target benefit would mean that employees would not know with any certainty what their pension benefits would be in retirement. Current retirees could see their promised benefits reduced.
This legislation will appeal to employers because they can reduce their risk and reduce benefits. We will need to be prepared to fight back.
At the same time the Conservative government wants to take away secure pension benefits, they’re also blocking the any expansion of the Canada Pension Plan for Canadians including the 12 million who don’t have a workplace pension.
While no legislation has been introduced yet, PSAC is working with the Canadian Labour Congress and other unions to protect our members’ pension plans and we’re working to promote alternatives that will improve retirement security for all Canadians.
For more information about PSAC’s position on target benefit pension plans and what the Conservative government is considering, please visit the PSAC website.