April 12: Air Canada seeks overhaul of pilots’ pension plan

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  1. ACMM
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    Source: Globe & Mail
    BRENT JANG
    Globe and Mail Update
    Published Tuesday, Apr. 12, 2011 3:27PM EDT
    Last updated Tuesday, Apr. 12, 2011 3:31PM EDT

    Air Canada (AC.B-T2.320.041.75%) is seeking to revamp its pension payouts for pilots, hoping union members will ratify a tentative labour pact that calls for new hires to join a separate plan.
    Under the existing defined benefit pension plan pilots will be paid a guaranteed level of money once they retire, but under the proposed defined contribution (DC) pension, the amount received will vary based on the performance of the investments held by each member of the plan.

    “All new hired pilots after April 1, 2011, will be on the DC plan,” according to the tentative agreement between the carrier and the Air Canada Pilots Association. “Pilots hired after Nov. 1, 2010, will have a one-time opportunity to switch to the DC plan.” The defined benefit plan would be wound down, long-term.

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