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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Mission RCMP seek public’s help to locate missing woman

Jeannie McBride was last seen on Jan. 13, 2020 near the 1800 block of McCallum Road

VIDEO: Construction worker injured after boom lift falls over at new Abbotsford courthouse

Emergency crews rescue worker, rushed to hospital with significant but non-life threatening injuries

Borrow $8 billion for Fraser Valley rail link, Abbotsford mayor urges province

Henry Braun urges province to borrow billions to connect Abbotsford & Chilliwack to Metro Vancouver

Mission Outlaws extend unbeaten streak to seven

Mission ties Port Moody 6-6 on Saturday, remain in second place

Abbotsford’s rolled-over dairy truck lost 40,000 litres of milk, recovery valued at over $500,000

Truck removed Sunday, Jan. 19, with specialized equipment to upright vehicle

Four things ‘not’ to do if you run into Prince Harry and Meghan in B.C.

Here is a list of some things you definitely should NOT do, according to the BBC

Youth hit with gun butt during fight at Lower Mainland mall

RCMP are investigating the fight between two groups of youths

Weather warning: 80 mm of rain expected overnight in Metro Vancouver

Environment Canada is urging caution when driving

Manitoba RCMP spent less than $800K on massive manhunt for Port Alberni men

Manitoba RCMP helped with 17-day search through the province’s northern terrain

Man killed by police in Lytton called 911, asking to be shot: RCMP

Howard Schantz, also known as Barry Schantz was killed following a standoff at his Lytton home

Canadian public health agencies ramping up preparations in response to new virus

Health officials have said there are no confirmed cases of the emerging coronavirus in Canada

‘Naughty boy’: Monty Python star Terry Jones dies at 77

The comedian has been suffering from a rare form of dementia

Theo the 800-pound pig trimmed down and still looking for love on Vancouver Island

“He’s doing really well, lost quite a few pounds and can run now.”

One dead following pedestrian collision in South Surrey’s Campbell Heights

Incident occurred just after 7 a.m. on 24 Avenue near 188 Street

Most Read