OTTAWA – In the wake of growing concern across the nation for the future of pension plans, the Liberal Party of Canada is responding with a National Pension Forum next week that will gather input on pension reform.

“We want to listen and learn about what it takes to protect Canadian pensions and prevent what’s happening to Nortel pensioners from ever happening again,” said Liberal Seniors and Pensions Critic Judy Sgro, who is hosting the forum.

On Monday, October 26, Ms. Sgro will hear from Nortel pensioners, as well as representatives of labour, big and small business, financial analysts, senior’s groups and non-profit or poverty organizations.

“The security of Canadian pensions is a central question,” said Ms. Sgro. “We need to find better ways of safeguarding the investments of Canadians.”

Ms. Sgro said the Liberal Party is best positioned to effectively address the issue of pension protection given its healthy track record. Under former Prime Minister Paul Martin, Liberals secured the Canada Pension Plan for future generations.

“Stephen Harper doesn’t believe the federal government has a role to play in helping Canadians when they need it, and Jack Layton can spout as many ideas on pension reform as he likes but he will never be in a position to implement them,” said Ms. Sgro.

“We are proud of the fact that it was a Liberal government that put the Canada Pension Plan on sound fiscal footing – and that as a result Canada is the only industrialized country with a public pension plan that is financially sound.

“We are committed to continuing to work to find ways to ensure that Canadians’ pensions remain secure into the future. That’s what this forum is all about,” she said.

Ms. Sgro will take what she hears at the forum and, with her National Expert Working Group on Pension Reform, use it as a basis to arrive at policy recommendations for pension reform.

The forum is open to media and Ms. Sgro will meet with members of the media following the forum.

BACKGROUND

Pension Fact Sheet

• As result of restructuring of the Canada Pension Plan under previous Liberal governments, Canada is one of the few industrialized countries with an actuarially sound public pension program.

• The Liberal-created Guaranteed Income Supplement (GIS) and Old Age Security (OAS) plans also help low-income seniors to ensure they do not suffer from widespread poverty.

• According to Statistics Canada and the Canadian Institute of Actuaries, 29 per cent of Canadian households have no retirement savings beyond what is offered by OAS, GIS and CPP. 

• Only one-third of Canadian households have sufficient savings to maintain their standard of living through retirement years. 

• Furthermore, as a result of many high profile corporate bankruptcies and restructurings during this economic recession, there is a significant concern among pensioners that the pension plans they have paid into all their lives are at risk.

• In four years, the Conservative government has done little to improve pension management in Canada.

• In February 2009, after many seniors had lost much of their retirement savings in the stock market crash, Finance Minister Jim Flaherty said his government would complete its consultations into pension reform within 90 days.

• This has been delayed a number of times, and now the consultations will not be completed until December – meaning any substantive action on reform will not emerge until well into 2010.