A Letter to John Tory

A Letter to John Tory

Mr. John Tory, MPP Leader - Progressive Conservative Party of Ontario September 7th, 2007

Dear Sir,

I am writing you in response to your announcement in July regarding your commitment to fairness for all Ontarians concerning locked-inpensions.

Although we haven’t met, you may be aware of me through your Economic Policy Advisor, David Goodwin. Mr. Goodwin and I worked together, the day before, to the extent where I provided the details and facts for your information backgrounder and your subsequent announcement for unlocking pension income the following day.

I thank you for addressing the needs and the quality of life for the many retiring and retired Ontarians by committing to unlock all Ontario locked-in pensions 100%. I’m certain all people in Ontario with locked-in pensions will undoubtedly thank you as well.

As you are aware, there has been a significant lobbying campaign in the province by a large number of private citizens, the Ontario Coalition of Independent LIF Holders and CARP.

I believe listening to the voices and stories from people such as these has led to your decision to right the wrong of your predecessor that occurred within Bill 27 in 1999.

Fairness, such as this will no doubt give more people a chance to contribute to the province’s prosperity and the ultimate right to manage pension money that is rightfully theirs.

Although I would have preferred your intention to be 100% unlocking at the qualified age or 55, whichever came first as was done for 61 MPP’s in 1999, the 50% split at 55 and the remainder at 65 is certainly and without a doubt a huge step in the right direction to ending government interference in the personal and private financial matters of all Ontarians.

As I’m sure your research will confirm, there is in excess of an estimated one million LIF and LRIF holders in our province. That number grows steadily as a number of people continue to be forced to commute their DB (defined benefit) pension plans and convert their assets into LIRA's (Locked-In Retirement Accounts) and eventual subsequent LIF's and LRIF's due to plant closures and permanent layoffs.

Obviously this is a very large number of affected people, some of whom are unaware, as yet, of the severely limited access they will have to their locked-in pension once qualified.

However, additionally, there is much more to the real and total number of affected people than those currently qualified holders of LIF’s and LRIF’s.

The actual much larger unrealized quantity exists in the eventual and future holders of LIF’s and LRIF’s.That is, in addition to the growing number of unfortunate commuted DB pension plan recipients and the current holders of LIF's and LRIF's, there are millions of other Ontarians working for companies that are currently in possession of DC (defined contribution) type pension plans.

These DC plans accrue deferred pension plan assets that are also in the form of a locked-in component of the plan member’s overall pension plan. The actual percentage and amount is determined by each individuals plan arrangement with their employer. That component provided by the employer’s contributions will also be regulated, one day, by the Ontario Pension Benefits Act in the form of a locked-in fund.

In the early years of building these pension assets, little attention is paid to these monies since the age of 55 is often far away and thus generally out of the minds of these younger workers.

As the number of holders of DC type pension plans increase, so does the importance of passing legislation, as you’ve announced, to deal with that eventuality in terms of sufficiency and predictable pension planning.

It is my belief that you consider recognizing this “other” growing body of future “LIF” and “LRIF” holders throughout your campaign when speaking about your commitment to unlock Ontario’s pensions and that you include this “lesser known”, much "larger quantity" of individuals.One day they too will be affected by your intended positive changes to the pension legislation pertaining to locked-in pensions as governed by the Ontario PBA.

This significantly large pool of people, once educated to the future liability of the DC pension, will no doubt be thankful, appreciative and responsive to a government that intends to ensure that their future years, as well, are not shackled by paternalistic and restrictive legislation preventing them from full control over their future retirement funds.

In closing, and as every vote counts, I believe it is an important strategy to inform and educate not only the current holders of LIF’s or LRIF’s in Ontario of your intention to unlock their pension assets, but the huge number of future holders of locked-in pensions as well.

Getting this message out to all affected people is paramount since the component of a DC type locked-in pension plan and future unfortunate recipients of commuted DB plans, affects far more additional people than those current holders of LIF’s and LRIF’s.

Informing these two groups of people affected by locked-in pensions,both present and future, is a very significant opportunity for you and your party to recognize and harness the necessary support in order to carry out your intention to unlock pensions in your bid to become the ruling party in this great province of ours.

A province founded and built under laws of fairness, equality, and freedom of lifestyle choice not only during our working years, but as well, during those all too often relatively precious few retirement years.

Thank You.Sincerely,Grant Fleury

Ontario Coalition of Independent LIF Holders