Canada's Modern Post

The Government response to the Canada Post Review

On January 24th, 2018, the Canadian Government finally tabled a response to the Canada Post Review. The announcement was posted after a two-phase process begun in May 2016.[1]

The initial Review did not come as a surprise, especially after Canada Post became a central part of the Liberal election platform. The Review documents, especially the first phase process, was thorough and included a lengthy and in-depth process highlighting many issues that the Government needed to address. Unfortunately, the Government response to all this work was a letdown. Their response was only 421 words long, lacks any substance on the serious issues confronting Canada Post, and fails to provide a clear roadmap.

Relief Again for Canada Post Solvency Payments

The ongoing pension plan crisis at Canada Post is not going to go away in 2018—at least not until the new contract is ratified in the summer of 2018 and the Canada Post Pension Plan is overhauled.

Canada Post was given relief from making any solvency payments from 2014 to 2017.[1] If Canada Post was forced to make such payments, which would have averaged about $1 billion dollars annually, the company would have been forced into bankruptcy. However, 2018 is a little different than the last formula. Canada Post has declared they don’t have to make any payments. They do not expressly state why. Nor did the Government extend the relief formula used from 2014 to 2017.

The Prime Minister’s Promise for Retaining Defined Benefit Plans

In the lead up to the Federal election, the then candidate for Prime Minister, Justin Trudeau, made a bold pledge that Defined Benefit Plans would not be converted to Target Benefit Plans.

This statement is according to a brief submitted by the National Association of Federal Retirees (May 25, 2017) to the Government on Bill C-27. A bill which intends to transform Crown corporations and Federally regulated institutions pension landscape into Target Benefit Plans. It also includes means to phase out Defined Benefit Plans into life annuities.

Farewell to Canada Post’s Deepak Chopra

Deepak Chopra, President and CEO of Canada Post, has announced he is stepping down in March 2018.[1][2] His enduring legacy of Canada Post is that he helped it survive during a tumultuous period. His voice was seldom heard and his picture rarely showed on the company walls, but his shadow was everywhere.

His leadership ends an interesting chapter in this company’s history and creates uncertainty for the future.

The Canada Post Pension Plan: the Elephant in the Room

A report on Canada Post’s Defined Benefits pension plan and how it has become the number one issue to the company’s future survival. A look into the problems, challenges and solutions within the most difficult times in the history of Canada Post.