A pension offers financial security by providing steady income and peace of mind during retirement. While defined contribution (DC) plans are common in Canada, they are less reliable compared to defined benefit (DB) plans. DB plans guarantee retirees a predictable income for life, offering stability and protection throughout their retirement.

DB plans are typically managed by employers or jointly with unions. In these plans, the employer and plan members share the investment risks and funding responsibilities. The plan may cover a small group of workers or tens of thousands. Members stay in the plan for life, ensuring stable income regardless of market conditions or how long they live.

In contrast, DC plans put the responsibility on individuals to manage their investments and withdrawals after retiring. This leaves retirees vulnerable to market swings and the risk of running out of money.

PSAC recognizes these challenges and, based on member feedback, has worked to convert DC plans to DB plans at several workplaces. In recent years, PSAC helped members at the City of Whitehorse, Saint John Airport, and Kids Help Phone transition to a DB plan administered by CAAT, a non-profit pension organization.

Several other employers, including Yukon Energy Corporation, Deer Lake Airport, Sydney Airport, Sault Ste. Marie Airport, BWXT Medical, and BWXT Vancouver, have signed agreements to explore switching to DB plans.

Our union remains dedicated to securing better retirement benefits for our members. By prioritizing strong, secure pension plans during negotiations, we aim to protect their financial well-being in retirement.