North Bay June 19, 2014 FOR IMMEDIATE RELEASE
ONPA joins Canadian Federation of Pensioners
The Ontario Northland Pensioners Association (ONPA) has joined the 250,000 member, Canadian Federation of Pensioners (CFP). The CFP was formed in 2006 in response to concerns by the founding pensioner groups that provincial and federal legislation regulating Defined Benefit pension plans and governing the rights of pensioners during insolvencies provided inadequate protection for the pension promises that were made to them while they were working, and on which they rely.
“The ONPA needs to join with other pensioner groups to combat the growing negative attitude and misunderstanding regarding Defined Benefit Pension plans” said Phil Koning, ONPA Chairperson
Defined Benefit (DB) pension plans are being threatened by those who do not fully understand the value of the joint financial commitment between worker and company.
Good financial planning depends on early recognition of a monetary need later in life. Early adoption of regimented savings plans are fundamental to the ability of an individual to care for themselves and their family later in life. Without the discipline of the DB plan, we see concerns over the ability of people to sustain themselves in later years, resulting in more pressure on government services.
Communities benefit from DB plan pensioners by being able to keep seniors in their area who pay taxes and continue to spend in order to sustain themselves, in addition to opening up an opportunity for another worker to take their place.
Pension funds have grown so large they are competing for investment vehicles. Governments are so starved of capital they are turning to more expensive options in the private sector. Government bonds provide the safe investment opportunity pension funds require and provide access to capital needed for provincial infrastructure improvements.
Retirees with a guaranteed annual income are able to provide companies with a flexible part-time workforce and give non-profits a pool of potential volunteers.
“We are in danger of throwing the baby out with the bathwater so we must make politicians aware of the important role a defined benefit pension plays in our economy,”
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