Monday, December 6, 2010

Canadian Pension Indexing dis-continued

I received a letter from Morneau Sobeco today that indicated starting January 1st 2011 indexing for cost of living on retirees birthdays will be discontinued. This action is intended to reduce payments out of the pension fund that could make the deficit even larger.

There is no information yet of the official calculated percentage of the fund solvency ratio.

Morneau Sobeco indicated in the letter that if indexing was part of your pension agreement that would be taken into account when they are making the decisions on pension reductions. What that will mean to the pension going forward is not clear.

No comments:

Post a Comment