Safeguarding Defined Benefit Pensions 

Canadians expect their governments to work together to protect them. We are advocating for governments across Canada to work together to safeguard defined-benefit pensions plans. Our advocacy includes:

Monitoring the Implementation of the Pension Protection Act

In April 2023, CFP and our partners successfully secured the passage of the Pension Protection Act, which gives super-priority status to single-employer defined benefit pension plans in situations of insolvency. CFP is monitoring the implementation of this legislation and will proactively defend any legal challenges.

Calling on Governments to Require Full Pension Funding

CFP is calling on all levels of government to require full funding of single-employer defined benefit pension plans. Today, when a regulator says a pension is required to be 100% funded there is no obligation on the company to actually meet and maintain that level of funding.

Making Companies with Underfunded Pensions Accountable

Canadian companies have the discretion to use company cash and assets to pay executive bonuses, issue dividends, conduct share buybacks, etc., even when their pension is underfunded. CFP believes these actions should be prevented until its pension is fully funded and calls for blocking executive bonuses or issuance of dividends when a pension falls below established solvency funding requirements.

Advocating for Informed Consent for Pension Plan Changes

CFP is calling on regulators, governments, and unions to inform pensioners and receive their consent when changes are being made to pension plans that may impact plan benefits. Sadly, they are currently not required to do so. 

Supporting Pension Rights Education

CFP is partnering with Canadian investor protection, pension, and seniors’ organizations to support education and outreach programs focused on retirement income and income security. This includes advocating for plain and consistent language by pension plans, governments, and regulators so workers and pensioners understand their rights.