fbpx

Issue #30: Protect Pensioners from Corporate Default and Protect Deferred Wages

green banner with couple doing paper work on sofa

Table of Contents

Click on each section to navigate through the Policy Book.

Join CanAge

Issue #30: Protect Pensioners from Corporate Default and Protect Deferred Wages

Canadian pensioners need protection from corporate default, particularly during and post COVID-19. Compared to other jurisdictions, Canada significantly lags in its protection of pensioners. In the UK, 90% or more of pensions up to at least $57,000 annually are protected through a national pension benefit scheme. In the U.S. the Pension Benefit Guaranty Corporation protects pensioners; in 2018 a 65-year-old’s pension is guaranteed up to U.S. $71,431. In Canada, only Ontario offers some protection, and that is only “bottom-up” protection of $18,000 annually.

1.3 million Canadians with corporate defined benefit pension plans are potentially at risk of having their pensions cut. Canada needs pension reform to ensure that pensions of hard-working Canadians are not lost due to insolvency or bankruptcy. CanAge supports the calls of the Canadian Federation of Pensioners and the National Pensioners Federation for needed pension protections.

Recommendation #103: Create Pension Benefit Guarantee Funds Across Canada

Create Pension Benefit Guarantee Funds for all jurisdictions. Ensure pensioners receive 100% of their deferred wages – the pension their employer committed to. Currently, pension guarantee funds exist only in Ontario.

Recommendation #104: Fully Funded Pension Funds

Require pension funds to be fully funded to 100%.

Recommendation #105: Recurring Refundable Tax Credit

Establish a recurring refundable tax credit equal to the annual pension loss experienced by a pensioner. If legislation is amended to ensure pensioners receive their full pension or if a pension insurance program is created, this credit will serve as a backstop to ensure these changes work to protect pensioners.

Recommendation #106: Flexible Pension Reform

Operationalize modern tax and pension policies to allow for increased options for flexible retirement and a hybrid pension withdrawal and income-earning model.

Related news

Join CanAge

246 Bloor Street W
Toronto, ON, M5S 1V4

Factor-Inwentash Faculty of Social Work
University of Toronto

Join CanAge for FREE

®2020 CanAge Inc. All Rights Reserved

Thank You

By becoming a CanAge member, you’re adding your voice to our calls for change in protecting and improving the lives of older Canadians.

Know someone else who might like to join ?

share this with a friend

Share on facebook
Share on twitter
Share on linkedin
Share on email

You're Registered

Thank you for registering! Details will be emailed to you as soon as possible.

You're Registered

Check your email for more details. Thank you for signing up. We look forward to seeing you soon!

Skip to content