Saturday, August 21, 2010

Canadian Pensioners Rally at Queen's Park on Sept 15

The following announcement was posted on the NRPC web Site today.

On Sept. 30, 2010, the Nortel Defined Benefit Pension Plans will become orphans. The Financial Services Commission of Ontario (FSCO) will then take over as required by current law.

Unless the Ontario government takes prompt action, Nortel's pensioners will then lose 36% of their pensions and possibly even more. A major part of their loss occurs because, under current regulations, FSCO will simply wind-up the pension funds by converting them to annuities. This forever locks-in the existing pension deficit and it adds major penalties, because the cost of annuities is presently at the worst they have even been in 25 years with no relief in sight. It is the worst possible outcome for Nortel's pensioners, who will also be hit with the loss of their health and life insurance benefits.

Nortel Retirees and Former Employees Protection Canada (NRPC) is demanding that the Ontario government change its regulations and stop these automatic wind-ups. The added benefit of having members of the CFP organization supporting regulation changes is putting even more pressure on the Gov’t to bring changes. After all, It’s our money and it’s our pension. It’s should also be our call.

Instead of locking-in the losses and buying expensive annuities, the plans should be professionally invested for the benefit of the pensioners rather than the insurance companies. Alternatives should be available, to allow for the continuation of a much higher monthly pension and give the funds a chance to recover in value as the economy improves. It will provide more money for pensioners, save unnecessary disbursements from the PBGF (Ontario’s “Pension Benefit Guarantee Fund”) and also save costs to the Ontario taxpayer by keeping pensioners out of the social security system. In 2008, the government's own study of pensions recommended a similar approach but no action has yet been taken.

The money left in an "Orphan" Pension Funds is the property of the pensioners. It does not belong to the government of Ontario (FSCO). Pensioners must be allowed to decide how their money is managed!

Queens Park Rally:

Date: - September 15, 2010

Time: - Noon - for one hour

Message: - "It’s our money – It’s our pension – It’s our call”

Other groups participating: CAW, Teamster, CFP and its affiliates and CEP.

Dual MCs:

NRPC: Mike Campbell,
CAW: Bob Nickerson.

NRPC Nat’l President, Don Sproule
CAW Nat’l President, Ken Lewenza
CFP VP ON affairs: Jack Walsh
Genmo Pres. Brian Rutherford
Petition: - see separate article regarding the Petition

Buses planned for: - Kingston/Belleville, London, Brampton, Hamilton/St Catharines, Ottawa

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