CARP opposes corporate bailout at the expense of pensioners

October 29, 2008

Responding to reports that employers lobbied government to suspend their obligation to fund deficits, Susan Eng, Vice President, Advocacy of CARP said: “This is the opposite of what pensioners have demanded. Now their pensions are even more at risk.”

CARP has called for better protection for pensioners by requiring that pension surpluses in good economic times be set aside in contingency funds to be used to fund deficits in bad times. The insurance industry has such contingency requirements. Instead, pension surpluses have been used for contribution holidays leaving the funds vulnerable in market downturns.

“I have alerted 21 organizations representing 2.5 million Canadians about this threat to their retirement security”, said Dan Braniff, Founder, Common Front for Retirement Security, [CFRS] and Chair ofCARP’s the Georgian Bay Chapter.

“Better pension protection and retirement security must be a priority agenda item at the upcoming First Ministers conference” added Eng.

CARP has recommended the elimination of mandated RRIF withdrawals, better pension fund protection and the provision of a universal pension plan for those without any retirement savings.

CARP is a national, non-partisan, non-profit organization committed to advocating for a New Vision of Aging for Canada, social change that will bring financial security, equitable access to health care and freedom from discrimination. CARP seeks to ensure that the marketplace serves the needs and expectations of our generation and provides value-added benefits, products and services to our members. Through our network of chapters across Canada, CARP is dedicated to building a sense of community and shared values among our members in support of CARP’s mission.

For further information, please contact:

Pam Maher
Communications coordinator

Anne Gravel
Researcher, Policy Development

Susan Eng
Vice President Advocacy
CARP, A New Vision of Aging for Canada

Dan Braniff, Founder, Common Front for Retirement Security, [CFRS] and
Chair of CARP’s Georgian Bay Chapter.