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Canada:
Most pension plans in trouble OTTAWA - Even
though many workers pay into company pension plans, their benefits aren't
entirely guaranteed, the federal regulator warned Wednesday. As many as 75
company pension plans in Canada have been red-flagged as being in some
trouble, said Nick Le Pan, head of the Office of the Superintendent of
Financial Institutions. And because company
pensions are established as a kind of trust between workers and employers,
the federal agency that oversees pension plans can't promise benefits will
always be available. "We cannot
guarantee that benefits will be met in all cases," Le Pan warned in a
breakfast speech. However, his office
is tightening its oversight of company plans to try to ensure they remain
fully funded, despite the dramatic downturns in financial markets which
have drained billions from private and public pension plans. Bankrupt Air Canada
has been one of the most obvious recent trouble spots. Le Pan wouldn't say
much about the condition of the troubled carrier. But his agency is
alarmed by the fact that Air Canada took a break from contributing to
employees' pensions in 2001 and 2002. The company
admitted in bankruptcy filings this spring that it had underfunded its
workers' pension plan by $1.3 billion. In January, Le Pan's office asked Air Canada to kick in $200 million over five years to make up for last year's contribution holiday. Copyright
© 2002 Global Action on Aging
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