I agreeto Idea End funding of retirement incentives from underfunded pensions
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End funding of retirement incentives from underfunded pensions

The Ontario Pension Benefits Act allows companies to pay commuted value retirement incentives from the pension plan regardless the plan's solvency. This makes a bad situation worse as underfunded pensions are further depleted to cover these retirement incentives.

The regulations should be changed to only allow companies to utilize pension funds as retirement incentives when the pension is fully funded. If it isn't companies should fund retirement incentives from operations.

Please don't just pass by. If you choose not to support this idea, please post why and what you would propose as an alternative.

Submitted by mike.cnda 6 months ago

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  1. The idea was posted
    6 months ago

Comments (1)

  1. WOW - that is a terrific suggestion. Why on earth not do it? It makes perfect sense. I've always been opposed to companies buying off an employee when they want to get rid of him/her....and it's quite common. I can recall a few years ago when education spending was out of control (no change today), there was a move to give high-priced teachers retirement incentives to leave so that they could be replaced with lower-paid teachers! it was just sleight-of-hand and postponing the problem. And now the Teachers' Pension Plan has a huge unfunded liability.

    Anyway - congrats on that idea! Maybe it makes TOO much sense.

    6 months ago
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