Apr 17, 2020
Canada’s Building Trades Unions (CBTU) are pleased with the Government of Canada’s announcement to provide relief on federally regulated pensions, in the form of a moratorium on solvency payment requirements for defined benefit plans, through the remainder of 2020.
Leaders of Canada’s Building Trades Unions have been urging government to consider the negative consequences felt by pensions from the widespread impact of the COVID-19 situation and see the actions taken by the Federal Government as an important step forward.
“Canada’s Building Trades Unions have been speaking with government on behalf of Building Trades members to communicate the effect of COVID-19 on them and their families – and the health of our pension plans is one area that affects not only our current members but our many retirees,” said Robert Kucheran, Chairman, Canada’s Building Trades Unions. “This welcomed federal action is a good start and it is now important that provincial councils work closely with the provinces to get similar legislation enacted for multi-employer pension plans across the country.”
“Multi-employer pension plans, utilized by many Building Trades affiliates, have taken a significant hit due to the uncertainties amid the rapid progression of COVID-19, coupled with solvency legislation that puts additional stress on these plans. A single-employer plan is funded by one employer – therefore it’s important to have a solvency funding plan in place. However, Building Trade plans are multi-employer pension plans – in which thousands of employers pay into the pensions and should not be subject to onerous solvency funding plans,” said Joseph Mancinelli, LiUNA International Vice President and Regional Manager of Central and Eastern Canada. “We are encouraged by the announcement from the Federal Government and will continue to work with the provinces to address inadequate pension solvency legislation across the country to take necessary steps forward in making this a permanent solution.”