FEWO Committee Report

Dissenting Opinion of the Conservative Members of the Standing Committee on the Status of Women

Conservative members for the Standing Committee on the Status of Women, and indeed our Conservative Government, strongly recognize the importance of the issue of retirement income adequacy and security of Canadian seniors.  Government members also are sensitive to the fact that the Global Economic Recession of 2008-2009 has caused many Canadians anxiety about their retirement years. 

As the actions of the Minister of Finance demonstrate, this Conservative Government has been working hard on this very serious and complex issue for many months.  As part of this process we have been listening to Canadians broadly across the country from coast to coast, and we have been working closely with our Provincial and Territorial partners.  

In January, our Government released for public comment a major research paper on the legislative and regulatory regime for federally regulated private pension plans.  From March to May the Parliamentary Secretary to the Minister of Finance conducted extensive consultations from coast to coast where he met with various stakeholder groups, including many who appeared before our Committee as witnesses: Canada Association for Retired Persons (CARP), Watson Wyatt Worldwide, Towers Perrin, Osler Hoskin and Harcourt, Canada Labour Congress, La Fédération des travailleurs et travailleuses du Québec (FTQ) as well as Edward Whitehouse from the Organisation for Economic Co-operation and Development.  

Our Government is working with our Provincial and Territorial partners – who regulate over 90% of all pensions in Canada – and have created a Research Working Group of Federal, Provincial and Territorial Finance Ministers with respected academic Jack Mintz as director of research to conduct an extensive examination of retirement income adequacy.  This Research Working Group will be tabling their findings at the upcoming meeting of Finance Ministers scheduled for Whitehorse on December 17^th and 18^th 2009.  

Government members of the Committee are disappointed that the report does not recognize that a National Pension Summit with provincial and territorial governments has already been organized to discuss its findings in Whitehorse on December 17^th and 18^th 2009.  It is also disappointing and unfortunate that the Committee felt the report on Pension Security for Women had to be tabled in the House of Commons before the National Pension Summit occurs, as the Committee would have benefited greatly from the findings of the Research Working Group.

As more evidence of the Government’s actions, new regulations to provide temporary solvency funding relief for federally regulated defined benefit pension plans to help protect pension benefits while allowing companies more flexibility in meeting their pension obligations were brought fourth last June.  These measures cover plans established for employees working in areas that fall under federal jurisdiction.

In addition, this Conservative Government has introduced unprecedented changes to help ease the tax burden on seniors in Canada since 2006.  Approximately $2 billion annually in tax relief will help seniors and pensioners save for their retirement. 

Moreover, at the end of October, the Minister of Finance announced additional changes to the federally regulated private pension plans that include measures to:

• Enhance protection for plan members,
• Reduce funding volatility for defined benefit plans,
• Make it easier for participants to negotiate changes to their pension arrangements, Improve the framework for defined benefit contribution plans and for negotiated contribution plans,
• Modernize the rules for investments made by pension funds.

As the Minister of Finance has stated: “These reforms will provide enhanced benefit security for workers and retirees while allowing pension plan sponsors to better manage their funding obligations as part of their overall business operations.”

This Conservative Government is working diligently to help hard working Canadians save for their retirement, as well as working hard to find ways that will better protect the standard of living of Canadian retirees.  The actions of the Conservative Government and of the Minister of Finance clearly demonstrate that we are at the forefront on the issue of retirement income adequacy for Canadian seniors.