A lifetime of saving, with no guarantees for Atlantic Co-op retirees

Murielle DiDomenicantonio enjoyed a few months of retirement from Co-op Atlantic in Moncton before the rug was pulled out from under her. She was informed her pension was going to be cut in 2016.

"I was devastated."

Citing persistent financial challenges, the company closed some of its stores and began a restructuring process. At the time the pension was underfunded by $31 million, leaving retirees with a 32 per cent reduction in the payments.

So, DiDomenicantonio returned to work at 67 years old, not the future she saw for herself when she paid into a pension plan for 15 years.

"We didn't see it coming because as recently as 2012 we were told that even if the company went under, the government protects our pensions, there's rules in place to protect our pensions."

And two years later, the process is still going on. Derek Gerard is a principal and actuary with Eckler Ltd. the pension administrator  hired after Co-op Atlantic filed for creditor protection in 2015.

"We are incredibly busy right now finalizing the wind-up report," Gerard wrote. "Such report will be delivered to the NB Superintendent of Pensions in the very near future."

DiDomenicantonio was saddened to hear Sears Canada retirees are at risk of going through the same process of losing their financial security.

"It really brought our situation really back to the forefront," she said. "I feel so much for these people."

She recommends that Sears pensioners get informed and talk to a lawyer.

"When people are vulnerable, they are so easily manipulated into accepting things that shouldn't be accepted."

But Bob Farmer, president of the Canadian Federation of Pensioners, said by the time a company runs into trouble, it's often too late for employees to do anything about saving their pensions.

"I think there is no such thing as a guaranteed pension in Canada."

He said people need to understand that the underfunding of pension plans is quite common when an employer goes bankrupt.

"Once the process is started it's pretty clear who gets first dibs on what amount of money, so there isn't much that can be done."

Farmer said employers saw financial trouble coming at Sears, but Co op Atlantic's bankruptcy came as a surprise to many.

"But by then the die was cast."

The time to act, according to Framer, is before trouble starts. He said the first thing employees should do is understand that pensions can be at risk.

"The other thing they should do is get involved with advocacy and make sure pension security is stronger than it is today," said Farmer.

Pensions can be both provincially and federally regulated, creating a number of statutes that pensions fall under.  

"The one thing in common with all those is that the rules that tell employers how much money should be put into a pension plan and when, are simply leaving pension plans with substantial underfunding," Farmer said.

"Pension rules should be stronger to ensure shortfalls are as not deep or as strong."

After working to get her pension back to no avail, Murielle DiDomenicantonio agreed.

"There's just not enough protection for the people that work. There just isn't."