Minister of Finance Launches National Consultation of Private Pension.
The Federal Government announced that the Government will begin scheduled public consultations across Canada on the legislative and regulatory framework for federally regulated private pensions. Consultations begin in Ottawa on March 13th and will end in Winnipeg on April 17th.
Here are (3) consultations submitted that are of importance to CN pensioners:
Consultations are a result of the Department of Finance Consultation Paper
(a) Joint Submission to Department of Finance Canada on its January 2009 Pension
Plan Consultation Paper
(b) Submission by the National Council of CN Pensioners
(c) Submission by National Automobile, Aerospace, Transportation and General
Workers Union (CAW-CANADA)
I have received many emails such as the one below as well as numerous phone calls on the financial status of the CN Pension Plan. I am going to use our website to try to reach out to as many CN Pensioners as possible. You may also use the discussion forum on our website to contact the National Council with any of your questions or concerns.
During these trying times, pensioners in both the U.S. and Canada are concerned about the future viability of their defined Company pensions. As a CN retiree, I am no exception.
Recent newspaper articles have speculated that many Canadian companies are falling behind in their ability to maintain the financial health of their corporate pension obligations, especially in light of plummeting stock market returns over the last six months.
Can you please advise the CURRENT status of the CN pension plan; and in particular, whether the Corporation is going to have to make a significant contribution in 2009 to said Plan?
Many thanks for your time and attention to this matter.”
Today numerous pension plans are in trouble. I am sure you have been watching the GM pension plan turmoil closely. Be thankful however that you are not a member of that plan. The plan you are a member of is one of the best funded plans in Canada at this time.
The last actuarial valuation of the CN Pension Plan showed a surplus as at December 31, 2007, while most federally regulated plans in Canada were in a deficit. This put the CN Pension Plan is a better position than many to weather the storm. Furthermore, CN’s investment division performed significantly better than most pension plans in 2008. What is important in these times is the strength of the Company sponsoring the pension plan. We are fortunate that CN remains a financially strong Company and has the ability to fund the promised retirement benefits.
Because so many pension plans are now in a deficit position, various levels of government and governing agencies are looking at making changes to the pension plan regulations and legislation under their jurisdiction. The federal changes should be in place by this fall.
In summary, The CN Pension Plan is well funded for these difficult times thanks to the CN Investment Division looking after our investments and CN following a prudent funding policy. Through proper investments the value of our plan assets may have dropped some however we did not suffer near as badly as most other plans. I assure you that the CN Pensioners are not vulnerable at this time nor in the immediate future. Unless something drastic happens in the future that no one is aware of at this time I am confident that we are in one of the best plans in Canada at the moment.