Ontario PC'S Promis to unlock locked in pensions

For Immediate Release
July 5, 2007

TORY SAYS ONTARIO SENIORS DESERVE PENSION FAIRNESS

PC plan will increase fairness, give seniors full access to locked-in pensions(London, ON) –

Progressive Conservative Party Leader John Tory today said a PC Government will unlock pensions for seniors and retirees so they can access and manage their own money as they see fit.

“Ontario’s seniors and retirees built the foundation for the strong Ontario we know today. They deserve to have control over their hard-earned retirement savings,” said Tory.

“I’ve heard from seniors and retirees across the province that the rules are too restrictive. We believe that Ontarians know best how to look after their money– not government.”

Tory met with and listened to the concerns of local seniors today in Southwestern Ontario. As part of the PC ‘Leadership Matters’ plan to provide fairness to Ontarians,

Tory said a PC Government will give Ontarians 100 per cent access to their locked-in pension income. This would mean seniors and retirees would have access to 50 per cent of their pension at age 55 and the remaining 50 per cent at age 65.

In Dalton McGuinty’s Ontario,

pensions are locked-in by the government as late as age 90 and the most any senior can hope to access from their pension savings is one out of every four dollars.

“Our plan will allow Ontario seniors and retirees to have control over their own money and better plan for retirement based on their own needs,” said Tory.

“Ontario’s pension regulations present unnecessary challenges for seniors and retirees looking to transform a lifetime of hard work into financial freedom.” Tory added,

“This is a simple change to Ontario’s pension rules with no cost to the taxpayer.

Unlike Dalton McGuinty, who is only willing to provide seniors and retirees with partial access to their locked in pension funds,

a John Tory PC Government will respect the wishes of these individuals to manage their money as they see fit.”

In the 2007 Budget, Dalton McGuinty responded to seniors and retirees concerns about this issue by proposing a plan that would give Ontarians access to 25 per cent of locked-in accounts at the earliest retirement date of the pension plan from which the money was transferred and 100 per cent access at age 90.

To date, no regulations or legislation have been brought forward to enact these proposed changes.

During his remarks, Tory cited comments made in March 2007 by Dr. Jack Mintz of the University of Toronto calling for Ontario to unlock the chains put on pension savings of employees who change jobs or retire.

According to Mintz, unlocking locked-in pensions would help contribute to labour mobility, better retirement plans and ultimately, a stronger economy.“Leadership is about listening to seniors and retirees.

If we are going to remove the barriers and give Ontarians the fairness and peace of mind they deserve, then leadership matters,” said Tory.

For more information: Michelle Pennell(416) 325-9109