Pensions
OPSEU delivers message on Pensions at the Ontario Legislature today
April 1, 2010
Patty Rout, First Vice-President / Treasurer delivers
message today at the Ontario Legislature on Bill 236, An Act to amend
the Pensions Benefit Act. In addition to the submission of OPSEU’s core
brief, the Ambulance Division has also submitted a separate brief. The
summary of recommendations are as follows:
1. The issue of coverage must be resolved as 60% of
Ontarians remain without adequate retirement incomes. OPSEU is committed
to universal coverage as the central issue of pension reform. We
appreciate the working accord between the federal and provincial
governments on pension policy and research.
2. We urge the Ministry of Finance to move forward on
the introduction of the second phase of pension reform. There remain
major issues of pension policy to be addressed: pension funding rules,
the use of plan surpluses and benefit security through the Pension
Benefit Guarantee Fund (PBGF).
3. We urge completion of the study on increasing the
benefits of the Pension Benefits Guarantee Fund. Our brothers and
sisters in the private sector have suffered substantial pension losses
through no fault of their own.
4. OPSEU strongly recommends that the OPTrust be enabled
to broaden the scope of its mandate through immediate regulatory change
as the government has achieved for Teachers’ and OMERS.
5. To avoid split pensions and ensure portability in the
future, groups of OPSEU members who are being divested, sometimes
several times over, must be assured that their pension will follow them
wherever they go. This requires a regulation to the OPSEU Pension Trust
Act to cover divestments in all sectors.
6. We appreciate the attempt to remedy historic
injustices. However, we propose that the major pension plans (rather
than originating and successor employers) be charged with negotiating
framework agreements (much like reciprocal agreements for individuals)
to facilitate the transfer of assets and to remedy the losses suffered
by OPSEU members in the past. These negotiations should occur within the
strict timelines of 2013 and failure to do so should result in
intervention by the Superintendant. OPSEU strongly opposes any
lengthening of this timeline. Justice delayed is justice denied. These
negotiations must be structured to provide a remedy for all affected
whether plan member or retiree.
7. For those with pensions in both the private and
public sectors, portability must be ensured and split pensions must be
avoided at all costs. An agency for stranded pensions, as recommended by
the Arthurs Commission, may be helpful for those with work for several
employers or whose work is especially mobile. OPSEU encourages the
establishment of the Ontario Pension Agency throughproclamation of
section 103 of the PBA.
8. We support the immediate vesting of pensions and
amendments providing for higher thresholds for lump sums.
9. OPSEU strongly supports the expansion of grow-in
rights to ‘involuntary terminations of employment. It will mitigate the
loss of plan members’ rights through the elimination of partial wind-ups
of plans. We hope that the regulator will follow the intention of the
Arthurs Report in establishing as broad a definition of ‘involuntary’ as
possible with the exception of terminations for ‘just cause’.
10. OPSEU also supports the proposal that jointly
sponsored (JSPPs) and multiemployer pension plans (MEPPs) may elect not
to provide these benefits. We do not support the view that an exemption
for grow-in benefits should be automatic rather than elected as some
large plans have proposed.
11. OPSEU recommends that the government study the
implementation of phased retirement programs as suggested by the Ontario
Expert Commission onPensions; but, if the government intends to
continue, that such programs be subject of collective bargaining.
12. OPSEU therefore agrees with the Arthurs Commission
that the regulator should give stakeholders notice to comment before new
regulations are introduced; further, that this should be a requirement
of the Pension Benefits Act.
OPSEU’s core brief
OPSEU’s Ambulance
Division’s brief
