jo-ann hannah director, pensions and benefits
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Queens University Centre for Law in the Contemporary Workplace Pensions in a Unionized Workplace May 2014. Jo-Ann Hannah Director, Pensions and Benefits. ”I encourage you to go on living if only to enrage your annuitants” - Voltaire, French philosopher, 1750. - PowerPoint PPT PresentationTRANSCRIPT
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Queens University Centre for Law in the Contemporary Workplace
Pensions in a Unionized WorkplaceMay 2014
Jo-Ann HannahDirector, Pensions and Benefits
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”I encourage you to go on living if only to enrage your annuitants”
- Voltaire, French philosopher, 1750
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The struggle in collective bargaining over DB pensions
Employer Concerns Costly Volatile funding Accounting rules
Employer Solutions DC for new hires DC for everyone
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How the Union sees Defined Benefit
Historic fights for a decent pension plan
4.5 million workers still have DB plans
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Peace of mind
Member has a known amount at retirement
Sponsor responsible for investing and funding the pension
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Our employers have DB plans
Stewart converted Sun Life employees’ Defined Benefit (DB) to a Defined Contribution Plan
Donald Stewart’s annual DB pension is $650,000
Donald StewartRetired President & CEO Sun Life
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DB delivers better value
• A Better Bang for the Buck– National Institute on Retirement Security, 2008
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Pensions Support Communities
Pensions are 20% of earnings for some Ontario Communities
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How do we keep DB plans?
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• Support solvency funding relief• Benefit cuts – early retirement• Member contributions• DB lite for new hires• Hybrid pension – split the risk• No concessions policy
How do we keep DB plans?
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Resistance is NOT Futile!
• Coca Cola• Hiram Walker• 3M• General Dynamics • Nav Canada• St. Stanislaus-St. Casimir’s
Polish Credit Union • Xstrata • NVI Mining • Rio Tinto Alcan • Detroit 3 • Air Canada
Recent negotiations where we kept DB
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• Target benefit plans• DC plans • Negotiate beyond “insurers’ package”– Employer pays fees– Employer contribution rates must recognize “employee
risk”
When Push Comes to Shove
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• Problems in retirement security down the road
• Lesser benefits for new hires– Tension in the workplace
Two issues on the DB to DC conversion . . .
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Support the CLC expanded CPP