Newspaper Clippings: Pension showdown looms

Are you living on a pension?

Do you hope to do so anytime soon?

Be prepared for pension trouble(s).

According to an article in last Saturday’s London Free Press more people will reach retirement with little in their pockets or pensions to sustain them in the lifestyle they desire or to which they have grown accustomed.


Youch!

(Is this a bad time to say that the time to pursue a simple life is now. Or, ‘reduce spending, pay down debt, save money’? Sorry, I digress).

From the article:

Numerous iconic Canadian companies buckled under their debt in 2009... (recession related)

* If you lost your job in the last year or two you may have lost your pension too!

It became glaringly apparent that aside from debts owed to banks and other lenders, former employees were also taking a hit on their pensions.

* Many realize that the Canada Pension Plan will barely help them survive.

"There's going to be a showdown in 2010 around the laws governing private pension plans," predicted David Coles, national president of the Communications, Energy and Paperworkers union. “The dispute hinges on the ability for a company to wind up its pension plan when it goes under.”

Coles said the courts and lawyers consider workers a low priority behind creditors, including the banks and other businesses, which has been a point of major contention with pensioners.

* This will be a long, loud, hard debate... and it’s not the only concern Cole mentions.

"Some of the corporate right and politicians are saying companies can't afford to continue these rich pension plans -- problem is, it's not their frickin' money to start with," Coles said.

Yes, pensions are expensive, like education and health care and other programs the majority of Canadians are willing to support.

But wouldn’t it be more expensive NOT to have pensions, schools and hospitals?

***

The pension battle will be worth watching.

As a retired teacher I have what is called a guaranteed pension.

But in the last few years I’ve learned that nothing is guaranteed.

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