Sunday, June 14, 2009

Retail Wholesale Union cuts pension benefits

read article: Vancouver Sun
One of the plan's problems is that there are about 660 retired members receiving benefits and only about 400 active members paying into the plan. This is due, in part, to contracting out of some work that union members previously performed.

Even before the recent market meltdown, the plan was in some difficulty. As of Dec. 31, 2007, the plan had a 'solvency deficiency' of three per cent, DeBeck noted in his letter to members.

That deficiency jumped to 24 per cent by Dec. 31, 2008, due mainly to the plan's heavy weighting in equities, a weighting so heavy that by April 30 this year -- even after the stock market had suffered a sharp reversal -- the plan had 57 per cent of its $215 million total assets in stocks.

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