Pension News from CUPW

Congratulations to Sister Micki McCune.  She has been elected as the representative of all active members to the Canada Post pension plan advisory council.

She will continue to work to ensure that our pension plan is safe and secure.  There are four other CUPW representatives who are also members of the Canada Post Pension Plan Advisory Committee.  They are Gayle Bossenberry 1^st National Vice President, George Kuehnbaum National Secretary‑Treasurer, Donald Lafleur 4^th National Vice-President and Madeleine Cleroux, Central Regional Union Representative.

 

Defined Benefit Plan

The Canada Post pension plan is a defined benefit plan.  In a defined benefit pension plan, the amount of the pension is set in advance according to a specific formula.  In the Canada Post pension plan, the amount is calculated the following way:

• 1.3% of your highest average earnings for five consecutive years times your years of pensionable service, this is for your lifetime pension.  Your lifetime pension begins when you retire and lasts until you die.
• 0.7% of your highest average earnings for five consecutive years times your years of pensionable service, this is for your bridge pension.  The bridge pension begins when you retire and lasts until you turn 65.

Defined benefit plans are under attack

In Canada and the United States, employers are trying to change defined benefit pension plans to defined contribution pension plans.  In a defined contribution pension plan, the amount of the contributions is set in advance.  The amount of the eventual retirement income is not set in advance. Defined contribution plans are based on the health of the stock market.

With defined benefit plans, including the Canada Post’s pension plan, your retirement income are not based on stock market fluctuations.  You are guaranteed a certain pension income based on a specific formula.

This is why employers and governments are attacking defined benefit pension plans.  They are using the economic crisis to weaken the rights of retirees, and to gut our pension plans.

CUPW is committed to ensuring the Canada Post Pension plan remains a defined benefit pension plan.  We must stand together to not only protect but improve our pensions.