Greg Taylor | CUPE Communications
If passed, Bill C-27 will allow federally-regulated employers to retroactively change a defined benefit pension promise into less secure “target benefits” by pressuring workers and retirees into surrendering benefit promises they have already earned.
Converting defined benefit pensions to a target benefit model shifts virtually all risk onto workers and retirees. Bill C-27 would essentially allow employers to walk away from pension commitments to their workers, and leave thousands of Canadians abandoned in retirement.
CUPE is strongly opposed to Bill C-27. While it only applies to federally-regulated employers, it will set a dangerous precedent for other jurisdictions, and put more pressure on defined benefit pension plans.
During the 2015 federal election campaign, Justin Trudeau clearly promised to protect good, fair defined benefit pensions from being retroactively changed to target benefit plans. Bill C-27 breaks that promise. The Harper government considered these changes, but even the Conservatives did not proceed with this anti-worker legislation.
Bill C-27 was introduced in Parliament late in 2016, but it has not been debated. There is still time to push back against this regressive legislation. CUPE is working with other unions and pension allies to stop this short-sighted and ill-conceived attack on the retirement security of Canadian workers.
More information on Bill C-27 and the threat it poses to workers can be found at cupe.ca/pensions.