● Amend pension benefit legislation for federally-regulated pensions to:
● Maintain the solvency target at 100%.
● Require annual Actuarial Valuations
● Require the sponsor, in the event that the Actuarial Valuation solvency ratio falls below a prescribed threshold to:
○ Obtain a letter of credit to return to 100% solvency, or
○ Abide by restrictions on corporate cash management similar to Ontario’s recent 520/20, until the solvency of the plan is restored, or
○ Obtain informed consent of a significant portion of plan members (perhaps >75%) to implement a different solution, other than a. or b.
● As a short-term measure, a Green government would introduce a refundable tax credit equal to the amount of pension loss an individual incurs when a pension fails.
● To better protect the pensions of all Canadians whose companies file for bankruptcy, under the Companies’ Creditors Arrangement Act (CCAA),a Green government would amend insolvency legislation to extend super-priority to the unfunded pension liability.
● Amend insolvency legislation to enable the creation of a Distressed Pension Facility in the event of a corporate insolvency.
● Ensure the Canada Pension Plan (CPP) remains robust and adaptive to changing needs and circumstances by increasing over time the target income replacement rate for income received during working years, as needed.
● Regulate the CPP Investment Board to require divestment of coal, oil and gas shares and ensure that all investments are ethical and promote environmental sustainability.
● Protect private pensions by amending the Bankruptcy and Insolvency Act and Companies’ Creditors Arrangement Act to establish the super-priority of pensioners and the pension plan in the creditor hierarchy during company insolvency proceedings.