Ottawa, December 11, 2013
2013-165
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.
Meagan Murdoch
Communications
Office of the Minister of State (Finance)
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
