April 20, 2018 – A recent CARP poll of over 3,000 members in Ontario reveals older Canadians want government action to protect their pensions now.
When asked about whether the government should take steps to protect pensions, 95% of respondents strongly agreed or agreed. Less than 3% of respondents disagreed or strongly disagreed.
CARP has been calling for urgent action from governments both provincially and federally to better protect pensioners.
It has called on the provincial government to increase the Pension Benefit Guarantee Fund (PBGF), which currently guarantees up to a maximum payout of $18,000 per year of an employee’s pension in case the employer goes bankrupt. When asked if the PBGF should be increased to cover pensions up to the CPP pensionable amount, currently $55,900 per year, 85% of respondents strongly agreed or agreed.
However, no party has committed to this level of protection. Recently, CARP asked each party what they would do to better protect Ontario pensioners, if elected in June? Here’s what they said.
One reason why Sears’ pension is underfunded is that the company sold assets and paid dividends to shareholders that could have gone to funding the pension. When asked if the new provincial government should limit dividends and executive bonuses if the pension fund is underfunded, 97% of respondents strongly agreed or agreed.
CARP has called on federal leaders to amend bankruptcy legislation to give pensioners super-priority status in the event of corporate bankruptcy or restructuring. Ninety-five survey respondents strongly agreed or agreed that the federal government should amend federal bankruptcy legislation.
CARP is a non-profit, advocating for financial security, improved healthcare and freedom from age-discrimination for Canadians as we age.
Over 3,000 members responded to CARP’s pension protection survey in April 2018 via e-mail. In a previous national survey of CARP members in August 2017, 74% of respondents said they were a member of a defined benefit pension plan and receive benefits. There are 1.3 million Canadians with corporate defined benefit pension plans.
Click here to review full Pension Protection Survey results.