Re: “Supreme Court rules against pensions,” Feb. 2.
It was dismaying to read that the Supreme Court of Canada has ruled that the U.S. parent of the insolvent Toronto Indalex company and its creditors are entitled to a percentage of the Canadian entity’s last $6.75 million, but that retirees’ pensions had no rights over any other creditors.
The need to repay loans to banks and other corporate obligations at a percentage of the remaining assets is understood. But banks and corporate creditors have business opportunities for some recovery. Must they be first in line?
The Indalex retirees lost more than half their pension income. As retirees, they have no opportunity to recoup that loss or to augment the ensuing reduction in their retirement incomes.
While employees must invariably pay their share, which is deducted from their current income, corporations don’t always ante up their portion, leaving some plans underfunded. If a company becomes insolvent, it is the employees, who have paid their full share toward retirement, who are out of pocket and must unfairly get in line with all other creditors.
When we get to our 70s and 80s, it’s a difficult time to accept this loss.
Surely, we should all go after our MPs about this in order that legislation will be introduced to protect the income of those current, and future, pensioners who have joined defined-benefit plans. It’s their money and they should be receiving it as a contractual obligation.
© Copyright 2013