CUPE 2424: Past pension cut by Carleton University "not compliant" with Pension Benefits Act; complaint filed with provincial pension regulator

OTTAWA, March 23, 2018 /CNW/ - The fight by Carleton staff for pension security has exposed what is being called a "disturbing history" of changes and amendments to the university's pension plan. According to their union, one particularly problematic 2003 plan amendment violated Ontario's Pension Benefits Act, prompting it to file a formal complaint to the Financial Services Commission of Ontario (FSCO).

Lawyers acting for the Canadian Union of Public Employees (CUPE) Local 2424, the union that represents workers on strike at Carleton, filed the complaint earlier today with FSCO, which they expect will launch an investigation into the matter.

"These new revelations are deeply troubling," said Kevin Skerrett, senior research officer and pension specialist with CUPE. "Our legal counsel has confirmed that Carleton's Board of Governors implemented an amendment to the plan that not only reduced members' future pension benefits but did so in a way that contravened provincial pension law."

The plan amendment in question removed a key protection in the plan known as the "Non-Reduction Guarantee," which ensured that pensions being paid to retirees could be increased (according to an indexation formula), but could never be decreased below the amount promised and paid at retirement. This guarantee is considered a fundamental element of all defined-benefit pension plans. In a 2003 plan amendment, Carleton's Board of Governors removed this protection for pension service after July 1 of that year.

"According to the legal advice we have just received, this amendment was not legal, and this unfortunately confirms our worst fears about the history of the plan's governance," declared Skerrett. "Our understanding is that no other defined-benefit university pension plan in Ontario permits the reduction of pensions being paid to retirees."

"This has grave implications not just for this group of workers on strike, but for everyone who belongs to Carleton's pension plan. It also highlights the crucial importance of protecting these workers' retirement futures by keeping their pension rights in their collective agreement," he concluded.

Members of CUPE 2424 ? administrative, technical and library staff at Carleton University ? have been on strike for three weeks to defend their right to a secure retirement income.

CUPE raised this concern with Carleton before filing the complaint but received no satisfactory response.

In light of these revelations and the FSCO complaint, CUPE 2424 is urging Carleton to return to the bargaining table to address workers' concerns and resolve the dispute.

SOURCE Canadian Union of Public Employees (CUPE)