Welcome to the website we have created to inform our TCRC-RTE (CPR) brothers of the Pension/Commuted Value/Grandfathering/Consent issue that was put into effect by Canadian Pacific Railway on January 1, 2005 based on Amendments that were made to the CP Pension Plan effective this date.
Firstly, we want to say that after much consideration and deliberation with many people within our organization and outside we have filed a Class Action Lawsuit against the TCRC and CPR. The "Statement of Claim" has been filed with the Manitoba Court of Queen’s Bench (August 14th, 2008). The claim can be viewed in this website under the corresponding header.
What we the members of the TCRC-RTE (CPR) want is the reversal of the "Amendments" that were put into effect and that can adversely affect each and every member. Many of the brothers do not understand what has happened and HOW they were affected. Even if taking the monthly pension option was their intent and feel the changes did not affect them, it did, and we will explain in the simplest manner so all can understand.
Before we explain the affects of the Amendment changes we would like to say that what we have initiated is in no way built on a disregard for our Union and what they have done for us over the years (BLE, UTU and now the TCRC). Thanks to these Unions we have what has to be one of the best Pension Plans and Benefit Plans in Canada and for that we should all be very grateful. Is it perfect?no, but maybe improvements will come in the future for the younger employees. Along with the Defined Benefit Pension Plan which we are members of comes an option that offers each and every one of us the ability to take the commuted value (lump sum). Regardless of where you are employed, if you are in this type of Pension Plan, the lump sum (cash) is generally an option that is your right to choose. The lump sum (commuted value) is affected by interest rates in that the lower interest rates are, the higher the commuted value will be and vice versa. Currently with interest rates at 50 year lows, commuted values are the highest that they have ever been which certainly has made this option more attractive than ever before and worth considering for some individuals.
This option is certainly not something that can be decided on quickly nor is it right for everyone and a significant amount of due diligence is required before anyone should make a decision regarding either option. Even deciding to take your Pension at age 55 should not be looked at lightly and considerations given to your overall financial situation. Be it a mortgage, young children with college bills in the future or large credit card debt, you have to look at all of this and PLAN what is the right thing to do for yourself and your family. Is retirement the right thing to do just because I have my 85 points? Should I work a little longer to pay down my bills? How is MY health and MY SPOUSES health? These are the most important questions you have to ask yourself in order to make an informed decision that will affect the rest of your life.
We are not trying to convince our brothers in any way, shape or form to take the lump sum option……….we want to retain what we HAD because it provided us an option that in certain circumstances was the BETTER choice for us and our families futures. We have no control over interest rates in this country that when low, benefit our lump sum immensely. Interest rates change with no input from us the employees, the TCRC or CPR.
The bottom line is that just when this option was appearing to be more favorable than ever before in history, changes were made to significantly affect the viability of this option to us and our families and no one seems to want to explain in simple English why these Amendments were necessary.
The four names you see on the "Statement of Claim" consist of two employees still working and two employees that have terminated employment in the last three years. Class Action means the lawsuit includes EVERYONE even without their names included.