After weeks of phone calls, letters and meetings between CUPW, Office of the Superintendent of Financial Institutions (OSFI) and Canada Post, OSFI has agreed to lift the restrictions on payments of commuted values from the Canada Post Pension Plan. They have imposed new restrictions which will allow members to withdraw the commuted value of their pension, but force Canada Post to pay a deposit of 40% of each withdrawal into the Canada Post Pension Plan.
The Canada Post Pension Plan has been notified by the Office of the Superintendent of Financial Institutions (OSFI) that the administrator may not transfer moneys out of the pension plan or purchase immediate or deferred life annuities without the prior consent of OSFI. OSFI is the independent regulator who oversees pension plans to ensure compliance with the Pension benefits Standards Act (PBSA) and its regulations.
On November 27, 2013 the Union was notified by Canada Post management that they are once again implementing a unilateral increase in pension contributions for employees. According to the notice the employee contribution rate will increase another 0.6 per cent of pensionable earnings. This is in addition to the 0.7 per cent increase that was unilaterally implemented by CPC effective July 1, 2013.
The time has come to ensure workers have more financial security when they retire. An expanded Canada Pension Plan/Quebec Pension Plan (CPP/QPP) would do just that. Small increases in contributions would effectively double CPP/QPP benefits upon retirement.
Canada Post management has informed the Union that it is “prepared to meet and review all possible scenarios to resolve the matters related to the financial health of the pension plan.” As you may recall, in my bulletin dated September 19, 2013, I mentioned that in early September, we met with Canada Post and we proposed to put in place a Working Committee to address the realities of the pension plan. We made this proposal because we believe that it is essential that postal workers are entitled to a secure pension during our retirement.
In recent months, there have been a lot of media reports and discussions about the future of Canada Post. The debates started again last April, with the publication of a Conference Board of Canada report on the future of Canada Post. The Corporation took advantage of the situation by launching an on-line public consultative process and having “private” talks with various stakeholders. Several right-wing groups, such as the Fraser Institute and the C.D. Howe Institute, made sure to comment, each time attacking the public postal service and the rights of postal workers. And each and every time, we responded with our own solution, i.e. the expansion of services, including financial and banking services.
Currently employees pay contributions that equal 40% of the cost of the Canada Post Pension Plan and the employer’s contributions amount to 60% of the cost. This 40-60 ratio was established in law when the Canada Post Pension Plan was created and Canada Post employees ceased to be part of the Federal Superannuation Plan. On May 29, 2013 Canada Post Corporation sent a letter to all employees stating that, effective July 1, 2013, the employee contribution rate for the Canada Post Pension Plan will rise by 0.7 per cent of pensionable earnings. It stated that further increases would occur in 2014 until the rate of contributions for employees would be 50%, the same as that for the Corporation.
It’s been a week since the federal budget was tabled and we are still aghast at the scope of the changes being proposed. This budget is a purely ideological and political one, ruled by the neoliberal obsession with what’s good for business. For the Harper government, the State must be stripped to a bare minimum and only provide basic services to the public. All barriers to trade and business must be removed, even at the expense of people’s health, the environment, culture and the less fortunate.
As employees of Canada Post, RSMCs now participate in the Canada Post Corporation Pension Plan (CPCPP). Canada Post contributes to the pension fund on your behalf and deducts your portion of the contributions from your paycheque. Canada Post also pays the employer portion of the Canada or Quebec P...
Support Postal Banking - Download and Sign the Petition
Canada needs a postal bank. Thousands of rural towns and villages in our country do not have a bank, but many of them have a post office that could provide financial services. As well, nearly two million Canadians desperately need an alternative to payday lenders. A postal bank could be that alternative. Download and sign the petition urging the Government of Canada to instruct Canada Post to add postal banking, with a mandate for financial inclusion.
Canada Post put out a message today to all CUPW members in the Urban Postal Operations and Rural and Suburban Mail Carriers units about benefits coverage and working conditions upon the expiry of the collective agreements on May 22.
This afternoon, Canada Post negotiators informed CUPW that they were leaving the bargaining table, calling it a “temporary pause,” to put together another set of offers. Canada Post would not provide a date for when the Union will receive these proposals. It could be in a few days; it could be next week. Given the seriousness of the matter, it is reprehensible to keep workers and the public on edge when we should all be focused on negotiating good collective agreements that will benefit workers and grow our public service to meet the needs of all Canadians.
The Union has been actively pursuing confirmation from Canada Post that it will respect the post-retirement benefits entitlements of retiring members. The Union was looking to confirm that members who retire will be eligible for post-retirement benefits in the event that the retirement would occur during a labour disruption.
Many members and their dependants are on prescription drugs commonly known as maintenance drugs or long-term medications. These are drugs you may take on a regular basis to treat conditions such as high cholesterol, high blood pressure or diabetes.
As reported in Negotiations Bulletin #75, CUPW and Canada Post returned to the bargaining table on Wednesday and Thursday this week in Ottawa. The meetings were facilitated by two Mediators from the Federal Mediation and Conciliation Services (FMCS) who are very familiar with our file.
This May, CUPW proudly joins the Asian community across Canada in celebrating
ASIAN HERITAGE MONTH. It’s a time to honour the history and rich cultural contributions of Canadians of Asian descent.
The results from yesterday's federal election are in, and we now know that the next government will be led by Prime Minister Mark Carney of the Liberal Party.
Few could have predicted this result just a few months ago. But a trade war with the US and threats to annex Canada upended the campaign and completely changed the political landscape.
On Wednesday April 30, your Negotiators are returning to the bargaining table in Ottawa to continue their efforts to secure good collective agreements for both the Urban Postal Operation (UPO) and Rural and Suburban Mail Carriers (RSMCs) bargaining units.
It is with deep sadness I must convey news of the passing of Darrell Tingley, former CUPW President and lifelong union activist.
From a very early age Brother Tingley committed his life to further the struggle of postal workers and the Canadian and international working class.
The past several months have been very busy for the Union. And in the month ahead, there is still more to come: a federal election, the Industrial Inquiry Commission (IIC) report, Canada Post’s 2024 annual report, and the end of the extension of our collective agreements. We know members have lots of questions about what is going to happen, especially after the extensions of our collective agreements.