BC FORUM News - from Employment and Social Development Canada

November 22, 2018

IMPORTANT TIME LIMITED ACTION ITEM BELOW

Government of Canada announces next steps in national consultations
on enhancing retirement security

Securing Canadians’ retirements with input from Canadians

Canadians deserve peace of mind when it comes to their retirement security.

That is why the Honourable Filomena Tassi, Minister of Seniors, today announced the next steps in national consultations on enhancing Canadians’ retirement security.

The next steps in consultations are being launched following recent events in which pensioners have faced difficult circumstances, including reduced benefits as a result of their employer’s insolvency and an underfunded workplace pension plan. At the same time, bankruptcies and insolvencies have also presented challenges for small businesses, lenders and other creditors that are owed money.

Canadians are invited to provide feedback through the Consultations on enhancing retirement security page between now and December 21, 2018. The potential actions span a number of areas, including pension regulations, corporate laws, and insolvency and bankruptcy laws, and allow for the exploration of all available avenues to improve retirement security for Canadians. This could include:

• measures to help ensure that employers maintain well-funded pension plans;

• better alignment of corporate decision making with pensioner and employee interests; and

• more transparency and fairness in insolvency proceedings.

In addition to the online consultations, the government will be conducting analysis and targeted outreach to stakeholder groups. Together, these activities will support the development of a balanced way forward in addressing retirement security for all Canadians.

Quotes

“We have taken concrete action to strengthen public pensions, notably by restoring the age of eligibility for the Old Age Security pension and the Guaranteed Income Supplement [GIS] to 65 and by increasing the GIS for the most vulnerable single seniors. These consultations mark another step toward ensuring that Canadians can enjoy the retirement they deserve.”

– The Honourable Filomena Tassi, Minister of Seniors

“Canadians shouldn’t have to worry about their pension security after working hard all their lives. We’re looking for a solution that will enhance Canadians’ retirement security and ensure everyone has the support needed to retire with dignity, while maintaining a competitive environment for business investment.”

– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

“Our government is committed to helping all Canadians achieve a secure and dignified retirement, so that as they retire, they can focus on the things that matter – like spending time with their loved ones – rather than worrying about making ends meet. We want to hear from Canadians, including workers, pensioners and businesses, on this important issue. Their feedback will inform our choices on how to enhance retirement security for generations to come.”

– The Honourable Bill Morneau, Minister of Finance

Quick facts

• In Budget 2018, and in the 2018 Fall Economic Statement, the government committed to consulting pensioners, workers and companies to support the development of a whole-of-government, evidence-based approach to addressing retirement security for all Canadians and protecting Canadians’ pensions.

• The Honourable Filomena Tassi was appointed Minister of Seniors July 18, 2018, with a mandate that includes a commitment to consult stakeholders and coordinate the government’s work to strengthen the protection of workplace pensions, working jointly with the ministers of Finance, Innovation, Science and Economic Development, and Employment, Workforce Development and Labour

ADDITIONAL (updated December 11, 2018):

TAKE ACTION TODAY!

All Canadians deserve a safe, secure and dignified retirement. In recent years, some pensioners have found themselves in difficult circumstances, facing reduced benefits as a result of their employer’s insolvency and an underfunded pension plan. To address these issues and enhance retirement security, we are seeking feedback from Canadians.

Consulting Canadians

We want to hear your views and opinions on how we can help to enhance retirement security, particularly for those who have workplace pension plans. Options to address the issues at hand include pension, corporate governance and insolvency policies, and could include the following:

• measures to help ensure that employers maintain well-funded pension plans, such as incentives to eliminate pension deficits before there is the prospect of insolvency

• restrictions on corporate behaviour, where appropriate, to better align corporate decision-making with pensioner and employee interests, such as restricting executive compensation and the payment of dividends in insolvency or near-insolvency situations

• more transparency and fairness in insolvency proceedings by increasing the information available and opportunities to participate in the proceedings at critical stages

In addition to hearing the views of Canadians, officials will be conducting analysis, research and targeted outreach.

For more technical details on options and considerations, you can review our consultation document: Enhancing Retirement Security for Canadians.

You can also join the conversation on Twitter: #YourFutureMatters

Complete the online form here.

The Consultations on enhancing retirement security closes on December 21, 2018.