A national non-profit organization is calling for the retirement security of Canadians to be a priority agenda item at the Nov. 10 meeting of First Ministers.

In a letter to the prime minister and all provincial premiers, CARP, a Toronto-based group devoted to enhancing the quality of life for aging Canadians, says recent stock market turmoil has had a “disastrous effect” on millions of retirees, reducing their savings precipitously.

Susan Eng, CARP’s vice-president of advocacy, said she is encouraged that Finance Minister Jim Flaherty brought up the issue of pensions at the recent meeting of finance ministers.

“We are asking that at the First Ministers’ meeting that the focus also include protection for the pensioners not just relief for the fund managers,” Eng said in a statement.

The organization requests that a pension summit be called to closely examine Canadian retirement security and recommend solutions to counteract any threats related to it.

“Who else should be looking after Canadians’ retirement security? Pensioners should not have to stand alone while they become fodder for the financial recovery of banks and other commercial institutions,” said Dan Braniff, founder of advocacy group Common Front for Retirement Security, and chair of CARP’s Georgian Bay chapter.

CARP also calls for additional measures in the short, medium and long term.

In the short term, CARP recommends a two-year moratorium on mandated minimum RRIF withdrawals, so that retirees are not forced to draw down their tax deferred investments or sell them in a depressed market.

In the medium term, CARP says pension fund managers should be required to reduce ‘exorbitant’ executive salaries and create sufficient reserve funds when the economy is strong to eliminate shortfalls when values decline. In addition, pension funds should have access to loans guaranteed by the federal government to fully fund their pension obligations, similar to the recent aid that the government afforded to banks.

In the long term, CARP calls for the creation of a Universal Supplementary Pension Plan that would provide a cost-effective, transparent saving mechanism to all Canadians, particularly those without access to workplace pensions or private savings.

“It is vital that our elected officials explore all available mechanisms in order to help those least able to recover from this market turmoil,” wrote Eng in the letter. “These certainly would include retirees who find their retirement savings and pensions decimated by events over which they have no control.”

IE