Pension plans benefit retirees, their communities and the economy

On February 20, CUPE is marking Pension Awareness Day by calling attention to the benefits of workplace pension plans for Canadian workers, local communities and the economy as a whole.  

Every Canadian deserves to retire in dignity with a decent retirement income. Defined benefit pension plans are the best way to provide a secure and predictable income for CUPE members and all Canadian retirees. CUPE is dedicated to protecting and strengthening our member’s pension plans, and helping ensure all Canadians have a secure retirement income. 

Good for workers, good for the economy, good for public services 

The benefits of pensions go beyond the personal finances of the retirees who receive them. A recent study commissioned by the Healthcare of Ontario Pension Plan (HOOPP) suggests that pensions have a positive effect on the physical, mental and social health of workers. When workers have good pensions, they live longer, healthier lives, which reduces pressure on the health care system. 

Pension plans benefit the broader economy, too. Research shows 98% of after-tax defined benefit pension payments are spent within Canada, and that spending supports more than 250,000 full-time jobs in Ontario. Across all levels of government, every dollar of pension income equals 41 cents in tax revenue and savings on supports for seniors. Increased tax revenue can fund better public services, and local communities benefit from the increased spending a secure pension income allows. 

CUPE continues the fight for improved retirement security 

After the financial crisis of 2008, employers and governments tried to convince workers and unions that defined benefit plans were broken and should be abandoned. CUPE fought back against attacks on pension plans across the country. As a result, members with defined benefit pensions are continuing to receive the personal benefits of a secure income, while our economies and communities continue to benefit as well.  

Pension plans themselves are doing well, too. Defined benefit plans that employers were ready to write off after 2008 finished 2024 at a near record high.  

CUPE will continue to fight to defend our members pension plans, to expand coverage to workers who do not have pension plans, and to improve the Canada and Quebec public pension plans. Every worker deserves dignity and security in retirement.