On June 8th, CanAge presented to the federal Standing Committee on Industry, Science and Technology on the topic of better protections for Canadian pensioners.
Specifically, we asked them to support Bill C-253, which safeguards defined benefit pensions by addressing the unfairness of current bankruptcy laws. Learn more about the Bill and how you can help.
We also made a series of recommendations taken from our policy platform VOICES: A Roadmap to an Age-Inclusive Canada (found under E for Economic Security).
Here is a summary of our recommendations:
Recommendation 1: Super-Priority
Create “super-priority” for defined benefit pensioners in the case of corporate insolvency.
Recommendation 2: 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 and only up to 85% (lowered from 100%)
Recommendation 3: Fully Funded Pension Funds
Require pension funds to be fully funded to 100%.
Recommendation #4: Retroactive Recurring Refundable Tax Credit
Establish a retroactive and recurring refundable tax credit equal to the annual pension loss experienced by a pensioner to make up for pension losses such as Sears’, Nortel and others. 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 #5: 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.