STOP BILL C-27
Bill C-27, An Act to amend the Pension Benefits Standards Act, is an attack on the retirement security of Canadians.
This bill will allow federally regulated employers to shift from good, defined benefit plans, such as the Public Service Superannuation Plan, that provide secure and predictable pension benefits, into the much less secure form of target benefits. If passed, this legislation could also signal that the government is considering similar action with respect to the Public Service Superannuation Plan.
Defined Benefit Pension Plan vs. Target Benefit Plan
- Guarantees a set amount of benefits for life after retirement based on earnings and years of service.
- Employers are responsible for covering funding deficits in the pension plans.
- Earned benefits are legally protected.
- Aims for a target amount of benefits, which can be reduced if the plan cannot fully fund those benefits.
- Employees assume all the risks and suffer the full impact of plan deficits.
- There are no legal requirements to fund target benefits.
While Prime Minister Justin Trudeau said in 2015 that defined benefit pension plans that workers and retirees have already paid into should not be retroactively changed into target benefit plans, this is exactly what Bill C-27 will do.
Below is a link to a petition opposing Bill C-27. The RCEA urges all members to sign this petition. It will send a message to Parliament that Canadian workers do not support such changes.