Approximately one year ago, NAV Canada and its unions addressed the Office of the Superintendent of Financial Institutions (OSFI) about changes to the pension plan.
The question put to OSFI was “How would you respond to a formal proposal to eliminate guaranteed CPI indexing in the very unlikely event that the NAV Canada pension plan were to be terminated in the future?”
Under our joint proposal:
1. There would be no change at all as long as the plan continues in effect.
2. The plan could never be terminated for UCTE members without UCTE’s consent
3. There would be no change for anyone who retired before the amendment was made.
4. In the event the plan was terminated, indexation would continue based on the availability of funds within the plan rather than a guaranteed amount.
The practical effect of this proposal would have been to generate huge savings for NAV Canada by reducing its enormous solvency deficit, and thus relieve NAV’s pressure on the unions to make real concessions on the pension plan.
OSFI finally convened the parties to a meeting on October 15th last. A representative of the NAV Canada Bargaining Agents Association (NCBAA) and its legal counsel as well as a representative of NAV Canada management team and its legal counsel were in attendance.
OSFI’s answer was “NO”. Even after much debate and discussion, OSFI views the proposal as a “workaround” which is contrary to the intent of the legislation- and it would not support a formal proposal along these lines.
The work to this point has been long and complicated, but it is not over yet. In the days to come the NCBAA will be meeting with the employer and our experts to decide on next steps. Also a document explaining in detail the history of how this file evolved will be issued. In the meantime we sincerely appreciate everyone’s patience and confidence.
If you have any questions or comments, please speak with your Regional Vice-President.