Update on NAV CANADA Pension Plan
On Thursday October 15th, representatives from NCBAA, NAV CANADA and their respective legal counsel met with the federal pension plan regulator (OSFI) to discuss the pension plan amendments agreed to in the last round of bargaining. All elements of the agreement have been implemented save and except for the provision dealing with indexation on plan termination. NCBAA and NAV CANADA first met with OSFI nearly a year ago to explain the proposed amendments. The October 15 meeting was to get OSFI’s reaction to the proposal.
After a lengthy review, OSFI representatives advised NAV CANADA and NCBAA that they would likely not approve the proposed amendments. Their reasoning is not entirely clear but OSFI doesn’t believe that the Pension Benefit Standards Act permits the kind of amendment being sought by the unions and the company.
It’s important to note that no formal plan amendment has been filed to date and OSFI’s position is preliminary. The feedback may be disappointing but the matter is far from settled. NCBAA and NAV CANADA will consider their next move because everyone is committed to getting these plan changes approved. There may also be other avenues and solutions which would accomplish the same goal: maintain the long term viability of NAV CANADA’s pension plan.
NAV Canada and the NCBAA will meet in the coming weeks to determine our next course of action.
Daniel J Boulet
Business Manager / Financial Secretary