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To: (Name of MPP)
I am writing to let you know
how concerned I am about the threat to Stelco pensioners’ retirement income
caused by Stelco’s restructuring. It is
clear from what Stelco has presented so far that they intend to reduce their
costs by taking money away from their pensioner’s pension and medical benefits
that were believed to be secure and protected by law. I understand that a major part of the problem has been caused by
the Government of Ontario reducing the minimum level of pension plan funding
required for large plans, and that although this regulation was changed, Stelco
was allowed to continue to underfund to the old level.
The Pension Benefit
Guarantee Fund (PBGF), which is intended to help pensioners when their pension
fund runs into difficulties, is of great concern to me because it:
·
is underfunded, and,
·
has not been adjusted
for inflation.
With respect to
underfunding, I understand that PBGF could not cover the demands placed on it
by Stelco pensioners should their funds be wound up. I have not heard that the
Ontario Government plans to rectify this problem.
With respect to the second
point, the minimum guaranteed pension has not been adjusted since the inception
of PBGF in 1980. It should be adjusted
based on growth in CPI so that the minimum guarantee is changed from $1000 per
month to $2500 per month.
I hope that you will be
taking a strong position in support of Stelco’s pensioners and would appreciate
learning from you what your action will be.
Yours sincerely
(Your Name &
Address)