We don't all work for the government or the banks.
Eliminate the employee and thereby eliminate the associated pension obligation. They are terminated just because they have long service.
But what choices does a person with long service have when they are terminated without cause. Imperial Oil clearly did not go bankrupt. Under funded pensions become a major problem for employees when a company goes bankrupt. I am not sure of the specifics of the Canadian Airlines employees. For those who were relying on company pension on retirement got a big "unpleasant" surprise. Many of those employees were in their early fifties and planning retirement with an attractive company pension. Imperial targeted employees with 15 to 30 years employment. Maybe they will fill the single tower back up when they complete the transfer of employees from Toronto to Calgary this summer. Imperial currently occupies about 50% of a single tower. The twin towers have subsequently been renamed. People who lived in Calgary in the early 80's may recall when Imperial opened their new twin office towers referred to as Esso Plaza. I suspect that they did that to significantly reduce their future pension liabilities. In the mid 1990's Imperial Oil terminated a large percentage of their senior employees in Calgary. Look what the US Government is trying to do right now with their Government pension plans. The Government clearly has a pension short fall, but they will just tax future generations or change the eligibility rules. I am sure he can speak for himself.īut he referred to other companies as well as the Government. I don't want to put words into "Neil's" mouth. Let's put it this way, when the Federal Government of Canada cannot meet their pension obligation to their own employee who by the way contribut 7% of their salary to the plan, the entire Country is in TROUBLE. Check with the Public Service Commission if you don't belief me. But for most people, the last 5 years works out to be their best 5 years. It is the best 5 years not the last 5 years. Do they even have the kind of pension anymore that's based on your 5 best or 5 last years income? I thought that was more or less extinct. Personally I'd recommend someone make plans for themselves and avoid being totally dependent on the gov't pension to kick in. Or private and semi-private companies like airlines getting an exemption so they don't have to fulfilli their pension obligations. Neil wrote:Crack a newspaper and you'll see that a week doesn't go by without a story of some government, quasi-government, or unionized pension plan having a funding shortfall.
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