CANADA - Part of the government's CAN$52bn (US$43.7bn) Employment Insurance (EI) surplus should be used to safeguard pensions, the UFCW union has said.
Wayne Hanley, national president of the UFCW, said: "Without some relief, the impact on employers and on workers could be catastrophic.
"EI premiums were paid to provide income security, and pensions are income. The billions Canadian workers overpaid in EI premiums should be part of a plan to make sure these pension funds survive until the stock markets recover, and to help fund shortfalls in the future."
The UFCW plan would see part of the EI surplus injected directly into pension plans to raise funding levels, while part of future contributions would also be used as contributions to pension savings.
In doing so the union said employers would be able to reassign cash flow from emergency contributions to salaries, protecting worker's jobs, while also providing liquidity and investment to be channelled back into the Canadian economy.
The union added the plan should not be seen as "a tax cut or a handout" and would not be an excuse for employers to cut their own contributions.
This week's edition of Professional Pensions is out now.
Industry Voice: Sponsored by Eaton Vance
BNY Mellon has launched a range of reporting tools to help institutional investor clients track and evaluate portfolio investments based on environmental, social and governance (ESG) issues.
PP speaks to BESTrustees director Heather McGuire about her views on the CMA's review into the investment consultant and fiduciary management markets.