18 July 2007

CBC told to distribute pension surplus
to plan members

Canadian Media Guild | CWA Canada Local 30213

The Consultative Committee on Staff Benefits (CCSB) has directed the Canadian Broadcasting Corporation to distribute nearly $75 million to CBC pensioners and employees who contribute to the pension plan.

The directive follows an evaluation of the plan showing it has a $131 million solvency surplus.

The CCSB also directed that CBC take a $12 million contribution holiday, in contrast to the $77-million holiday the corporation unilaterally announced last March. The $12 million would make up for the payment the CBC had to make for a 2005 solvency deficit.

Finally, the CCSB directed that $43.66 million, or one-third of the value of the surplus, be retained in the pension fund.

Under the collective agreement, the CBC is required to follow directives from the CCSB as long as they don’t entail an additional expense to the corporation.

The decisions taken by the CCSB followed an examination of the financial well-being of the pension plan. It was hoped that minor improvements could be made to the plan, but there were concerns that the changes could lead to additional costs to the CBC in the future.

(This story first appeared on the Canadian Media Guild website.)