In the year 2001, the Association managed to negotiate improvements to the Group Life Insurance program then available to pensioners. Under the previous regime, retirees at age 65 received a $4,000 paid-up life insurance policy (and had to pay the income tax on the benefit in the year it was received). We were successful in achieving two other options – (a) the benefit could be refused or (b) a retiree could opt for a $25,000 term insurance policy valid to age 70.
Starting in 2003, the CBC decided to cease sharing pension surpluses with pensioners and employees. Faced with that decision, the Association filed a legal claim (class action) in the Ontario Superior Court of Justice to force the CBC to continue to apply its policy of sharing pension surpluses, while the unions filed grievances.
In 2008, the Association, the CBC and the unions at CBC, except SCRC, agreed to a surplus sharing agreement that provides that whenever there is a pension surplus available for sharing, it will be shared equally between the CBC and the employees/pensioners. The 50% available for sharing by employees and pensioners will be based on the contributions to the pension fund by each pensioner and employee. This settlement required approval by the Court.
On October 25, 2010, Justice Andra Pollak of the Ontario Superior Court of Justice in her decision approving the settlement, stated that she was satisfied that the settlement is fair and reasonable and in the best interest of the class (pensioners).
We were active members of the Pension Splitting Lobby that successfully convinced the Federal government to implement pension income splitting between spouses for income tax calculation purposes, a benefit greatly appreciated by a majority of pensioners.
We were able to convince the officers of unions representing CBC employees that pensioners were definitely entitled to their share of the fund then known as the Employees’ Funds on Deposits. This fund was accumulated from surpluses from various employee-paid group insurance contracts while the majority of current pensioners were still employees. The fund has been renamed Employee/Retiree Funds on Deposits and some of its investment income is now used, amongst others, to finance the activities of the Special Assistance Fund, which provides assistance in defraying medical expenses not covered by any existing medical or insurance coverage.
We made a major contribution to the “Planning workbook for you and your survivors” distributed by the CBC in 2008.
