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Jo-Ann Hannah Director, Pensions and Benefits

Queens University Centre for Law in the Contemporary Workplace Pensions in a Unionized Workplace May 2014. Jo-Ann Hannah Director, Pensions and Benefits. ”I encourage you to go on living if only to enrage your annuitants” - Voltaire, French philosopher, 1750.

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Jo-Ann Hannah Director, Pensions and Benefits

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  1. Queens UniversityCentre for Law in the Contemporary WorkplacePensions in a Unionized WorkplaceMay 2014 Jo-Ann Hannah Director, Pensions and Benefits

  2. ”I encourage you to go on living if only to enrage your annuitants” - Voltaire, French philosopher, 1750

  3. The struggle in collective bargaining over DB pensions Employer Concerns • Costly • Volatile funding • Accounting rules Employer Solutions • DC for new hires • DC for everyone

  4. How the Union sees Defined Benefit • Historic fights for a decent pension plan • 4.5 million workers still have DB plans

  5. Peace of mind • Member has a known amount at retirement • Sponsor responsible for investing and funding the pension

  6. Our employers have DB plans Stewart converted Sun Life employees’ Defined Benefit (DB) to a Defined Contribution Plan Donald Stewart’s annual DB pension is $650,000 Donald Stewart Retired President & CEO Sun Life

  7. DB delivers better value • A Better Bang for the Buck • National Institute on Retirement Security, 2008

  8. Pensions Support Communities Pensions are 20% of earnings for some Ontario Communities

  9. How do we keep DB plans?

  10. How do we keep DB plans? • Support solvency funding relief • Benefit cuts – early retirement • Member contributions • DB lite for new hires • Hybrid pension – split the risk • No concessions policy

  11. Resistance is NOT Futile! • Coca Cola • Hiram Walker • 3M • General Dynamics • Nav Canada • St. Stanislaus-St. Casimir’s Polish Credit Union • Xstrata • NVI Mining • Rio Tinto Alcan • Detroit 3 • Air Canada Recent negotiations where we kept DB

  12. When Push Comes to Shove • Target benefit plans • DC plans • Negotiate beyond “insurers’ package” • Employer pays fees • Employer contribution rates must recognize “employee risk”

  13. Two issues on the DB to DC conversion . . . • Problems in retirement security down the road • Lesser benefits for new hires • Tension in the workplace

  14. Support the CLC expanded CPP

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