Ottawa, December 11, 2013
Harper Government Supporting Canada Post's Return to Financial Sustainability with Transitional Pension Funding Relief Regulations
The Harper Government today announced its intention to introduce regulations providing Canada Post Corporation with four-year relief from the requirement to make special payments to its employee pension plan, as ordinarily required under the Pension Benefits Standards Act, 1985.
“The regulations provide Canada Post with more time to pay off its significant pension deficit so that it can restructure its operations for long-term viability,” said Minister of State (Finance) Kevin Sorenson. “We believe these circumstances merit one-time transitional assistance. As part of Canada Post’s commitment to return to long-term viability, executive compensation will be restricted while the regulations remain in effect.”
This measure will support Canada Post’s ongoing restructuring efforts to ensure the company’s long-term viability and thus enable it to address its pension plan deficit of $6.5 billion. Canada Post’s current challenges are widely recognized as arising from the historical shift in favour of digital communications over lettermail.
The regulations will soon be published in the Canada Gazette for public comment prior to approval by the Governor in Council.
For further information, media may contact:
Office of the Minister of State (Finance)
Department of Finance