The Canadian Commercial Workers Industry Pension Plan (“CCWIPP”) is one of the largest, multi-employer pension plans in Canada with close to 400,000 current and former members of the UFCW Canada employed by over 200 participating employers. The CCWIPP is financed through a Trust Fund administered by a Board of Trustees consisting of both union and employer representatives.
Pension plans are part of the three tiered approach to retirement savings in Canada, which includes government (through CPP & OAS), personal savings and, for approximately 30% of workers in the private sector, a pension plan.
The past seven years, have proven challenging for many pension plans in Canada. Investment returns have been affected with risk factors such as market instability and volatility, as well as record low interest rates. Also, Members of Pension Plans are living longer which puts a strain on its liabilities. These challenges have required many plans, including CCWIPP, to restructure. These restructuring changes are designed to preserve and provide retirement income for plan participants.