Réseau FADOQ rejects Finance Minister Éric Girard’s decision to close the door on legislating protection for pension plans.
Canada’s largest seniors organization is once again declaring that it’s time for the Quebec government to introduce a pension fund insurance program like the one in Ontario. Under that model, employers pay for insurance at a variable rate based on the funding of their pension plan. In the event of the termination of a loss-making plan, pension fund insurance pays out benefits to pensioners whose fund has been cut.
“Minister Girard is acting irresponsibly by siding with companies when some are allowing deficits to pile up in their pension funds. Have we reached a point where we’re willing to passively accept the collapse of pension plans and the immense upheaval it causes for retirees?” asked Réseau FADOQ chair Gisèle Tassé-Goodman.
In the wake of the Groupe Capitales Médias crisis, Premier François Legault said he was open to looking at the possibility of introducing a pension fund insurance plan in Quebec. Réseau FADOQ is urging Mr. Legault to follow through on that so his government can implement measures to prevent other workers from being cheated in the near future. Otherwise, the next pension plan crisis will occur on his watch.
“Our organization does not understand Minister Girard’s statement, which seems to put the interests of businesses ahead of the workers who have spent years keeping them going. We believe it’s only fair that these workers should receive the money they have spent their lives saving for a decent retirement, instead of having part of their pension funds stolen. The workers aren’t responsible for the deficits and shouldn’t be collateral damage when an employer goes under,” said Ms. Tassé-Goodman.
Hence the need for a pension fund insurance plan. It’s one of the 36 demands included in the brief submitted by Réseau FADOQ to Minister Girard during pre-budget consultations (French only).