CAW Local 200 Retirees Submission
February 19, 2009
The Honourable Dwight Duncan
Minister of Finance
Attention: Commentson Report of the Expert Commission on Penions
c/o Pension and Income Security Policy Branch
5th Floor, Frost Building South
7 Queen’s ParkCrescent
Toronto, ON M7A 1Y7
RE: Comments to the Provincial Government on thefinal report of the OntarioExpert
Commission on Pensions
During the monthly meeting of CAW Local 200 Retired Workers Chapter discussions took place about the recommendations of the Ontario Expert Commission on Pensions. It resulted inthe motion to adapt the following Comments:
- Actuarial valuations that are now done on an annual basis should be continued on an annual basis. There should be provisions made that all pension plans have annual actuarial valuations to find the plans that are not complying with the Law.
- To change solvency valuations for information only is not acceptable.
- All Plans should be required to provide inflation provisions.
- Letters of credit are a risky experience and should not be attempted.
- Surplus in Pension Plans must stay in the plan as per the original Trust Agreement. Changing trust agreements means they are not a Trust.
- Set rules for portability to protect individual’s assets in a pension plan.
- In case of bankruptcy payments to the pension funds must be first to claim assets.
- Support the recommendation for the increase in payments from the Pension guarantee fund to $2,500.00. Include increases for inflation.
- In order to find Pension Plans at risk they must be valuated on annual basis.
- Include provisions that ensure transparency, make plan information readily available and allow active and retired members to be involved in joint governance.
- Expand CPP participation for individuals and small groups.
- Investment rules; the 30%, 10% and the 5/15/25 rules are too high. The involved risk is too great. Diversification is more prudent. Example: Caisse de Depot et placement du Quebec’s investment of $13.2 billion(8.5%) in ABCP. There are other examples.
- Again all valuation must be done on an annual basis.
- Continually monitor Pension Plans for compliance.
- Provide support for the continuation of the Pension Guarantee Fund.
- Amend the Pension Benefits Act to establish the right for Unions to participate in the governance of the Pension Plans.
- Provide opportunities for active and retired members to have a voice in decisions which affect them.
- Provide for educational programs for plan members about Pension Plans.
- Provide full support to change “former members” to “retired members”.
Submitted on behalf of CAW Local 200 Retirees,
CAW Local 200 Retired Workers Chapter
CAW National Retired Workers Executive