Capital market turmoil is melting away lifetime savings and pension solvency. The situation is getting desperate. Seniors in their sixties and seventies are worried that they will run out of money and those who have the option are looking part time work.
Many Canadians for the very first time are contacting federal and provincial politicians at all levels demanding greater protection from unscrupulous manipulation of the capital market system.
A new system called “Save Our Pensions (SOP)” asks writers to forward copies of their correspondence to info@saveourpensions.ca to be tracked and summarized.
Air Canada Pionairs, who initiated SOP, reports that 1100 members wrote letters in the last few weeks.
SOP’s analysis indicates that Finance Minister Flaherty’s Nov. 27 Economic Statement contained the following proposals as a direct result of this e-mail/letter campaign:
• “a one-time change that will allow RRIF holders to reduce their required minimum withdrawal by 25 per cent for the 2008 tax year.”
• “to allow plans under federal jurisdiction to double the length of time required for solvency payments from 5 to 10 years (provided plan members are consulted).”
• “launching consultations on issues facing defined benefit and defined contribution pension plans, with a view to making permanent changes next year.”
• “coordinating efforts with provincial and territorial counterparts to create a pension system able to withstand whatever future challenges come its way”.
Letters copied to SOP asked politicians of all stripes to put aside partisan differences to focus total effort on the financial and pension crisis.
Earlier this month media reports indicated that Prime Minister Harper will work with the opposition. Alongside his otherwise controversial proroguing of Parliament the Prime minister spoke in conciliatory terms, inviting the opposition to participate in the drafting of his government’s budget.
Reports in the media suggest that government and opposition proposals are incomplete and many miss the mark.
Writers consistently have asked that the following four issues be addressed in the January 27, 2009 Federal Budget.
1) A 2 year moratorium on RRIF mandatory withdrawals until the system is restructured.
2) A Pension Summit, with a retiree representative at the table to enact Pension reform: bankruptcy protection, insolvency safeguards and streamlining of The Pension Act.
3) A Universal pension plan
4) A National agency to protect savings and pensions from future crisis and white-collar crime.
Those who are planning to participate should consider sending a copy of their letters to info@saveurpensions.ca
Go back to Georgian Bay Chapter main menu to read posted representative letters.
