Newfoundland House of Assembly approves pension unlocking
BOURGEOIS ECONOMICS ARE DANGEROUS
CBC/Radio-Canada 2 days ago
Criteria for defining 'financial hardship'
The changes passed Monday evening apply to people who once held a pension, but no longer do, and have has those pension funds transferred to a bank or financial institution into one of three types of separate retirement savings accounts: LIRAs, LIFs, and LRIFs.
Those accounts currently cannot be touched until retirement age, and the proposed amendments would allow people to be able to unlock some of those funds and put the money toward demonstrated financial need.
On Monday afternoon, the government said the proposed amendments define financial hardship as the following:
Threat of foreclosure due to inability to make monthly mortgage payment.
Threat of eviction due to inability to make rent payment.
Inability to make first month's rent or security deposit when trying to rent accommodations.
Inability to pay for medical costs.
Inability to pay costs related to equipment or treatment related to disabilities.
People who have also been living outside of Canada for more than two years will also be able to unlock their funds. All requests for unlocking must be backed up by documentation, and the person must acknowledge the financial risks of using retirement savings toward present-day financial problems.
"Given these retirement savings arrangements are designed specifically to hold locked-in savings for individuals and their surviving spouses or partners, consent would also have to be obtained from the spouse or co-habiting partner to unlock a retirement savings arrangement," reads a media release issued Monday afternoon, outlining the proposed changes.
The government also stated that requests from low-income earners in the province would be considered. That would be based on a formula that "defines a low-income threshold of 66.66 per cent of yearly maximum pensionable earnings — which is $41,063 for 2021 — and is consistent with other jurisdictions, including Nova Scotia, Alberta and British Columbia."
NDP Leader Alison Coffin said she won't be supporting the proposed changes, arguing that it doesn't help people right now and the government should look at other solutions, like a $15 minimum wage.
She said changing the pension legislation is "misguided."
Independent MHA Paul Lane said he supports the changes, noting he knows people who would benefit from accessing these funds, but said the issue could have been communicated more clearly.
FOR WORKING PEOPLE
CBC/Radio-Canada 2 days ago
© CBC The House of Assembly reopened Monday, after political proceedings were stalled Thursday in what was expected to be a one-day sitting.
Newfoundland and Labrador politicians have passed legislative changes to pension fund rules, after an afternoon of debate Monday and a false start last week.
The bill passed 31-3 in the House of Assembly Monday evening, with NDP members voting against it.
Under the amendments, a small number of people in the province will be allowed to unlock their pension funds.
The bill was introduced in an expedited process on Monday afternoon. Service NL Minister Sarah Stoodley began the debate by outlining the proposed changes, which she unveiled to reporters last week, before proceedings stalled on the floor Thursday.
All MHAs had to agree to disregard the usual, lengthier timeline for passing a bill, but one, Independent MHA Perry Trimper, objected last week.
Trimper's qualms came not from unlocking pension funds but because he wanted to ask a question about flooding in Mud Lake, a community in his district of Lake Melville.
Time in question period was not allotted for Trimper to do so, and he then withdrew his consent to continue with the Pension Act amendments, tying up the process.
Trimper got to ask his question Monday, and then joined all other MHAs and agreed to discuss the changes to pension legislation
Newfoundland and Labrador politicians have passed legislative changes to pension fund rules, after an afternoon of debate Monday and a false start last week.
The bill passed 31-3 in the House of Assembly Monday evening, with NDP members voting against it.
Under the amendments, a small number of people in the province will be allowed to unlock their pension funds.
The bill was introduced in an expedited process on Monday afternoon. Service NL Minister Sarah Stoodley began the debate by outlining the proposed changes, which she unveiled to reporters last week, before proceedings stalled on the floor Thursday.
All MHAs had to agree to disregard the usual, lengthier timeline for passing a bill, but one, Independent MHA Perry Trimper, objected last week.
Trimper's qualms came not from unlocking pension funds but because he wanted to ask a question about flooding in Mud Lake, a community in his district of Lake Melville.
Time in question period was not allotted for Trimper to do so, and he then withdrew his consent to continue with the Pension Act amendments, tying up the process.
Trimper got to ask his question Monday, and then joined all other MHAs and agreed to discuss the changes to pension legislation
. 
© Sherry Vivian/CBC Independent MHA Perry Trimper, who left the Liberal Party in November, said he wanted time to ask questions about flooding in his district. On Monday, he got to ask his question.
Last week's political blockade drew the ire of other MHAs, as well as at least one person hoping to unlock their pension funds; Terry Hewlin spoke to CBC News on Friday, detailing his hope to be able to access some money due to low income.
Trimper, a former cabinet minister and former Speaker, left the Liberal caucus in November amid a rift over comments in which he said some homeless people chose their lifestyle.
Last week's political blockade drew the ire of other MHAs, as well as at least one person hoping to unlock their pension funds; Terry Hewlin spoke to CBC News on Friday, detailing his hope to be able to access some money due to low income.
Trimper, a former cabinet minister and former Speaker, left the Liberal caucus in November amid a rift over comments in which he said some homeless people chose their lifestyle.
Criteria for defining 'financial hardship'
The changes passed Monday evening apply to people who once held a pension, but no longer do, and have has those pension funds transferred to a bank or financial institution into one of three types of separate retirement savings accounts: LIRAs, LIFs, and LRIFs.
Those accounts currently cannot be touched until retirement age, and the proposed amendments would allow people to be able to unlock some of those funds and put the money toward demonstrated financial need.
On Monday afternoon, the government said the proposed amendments define financial hardship as the following:
Threat of foreclosure due to inability to make monthly mortgage payment.
Threat of eviction due to inability to make rent payment.
Inability to make first month's rent or security deposit when trying to rent accommodations.
Inability to pay for medical costs.
Inability to pay costs related to equipment or treatment related to disabilities.
People who have also been living outside of Canada for more than two years will also be able to unlock their funds. All requests for unlocking must be backed up by documentation, and the person must acknowledge the financial risks of using retirement savings toward present-day financial problems.
"Given these retirement savings arrangements are designed specifically to hold locked-in savings for individuals and their surviving spouses or partners, consent would also have to be obtained from the spouse or co-habiting partner to unlock a retirement savings arrangement," reads a media release issued Monday afternoon, outlining the proposed changes.
The government also stated that requests from low-income earners in the province would be considered. That would be based on a formula that "defines a low-income threshold of 66.66 per cent of yearly maximum pensionable earnings — which is $41,063 for 2021 — and is consistent with other jurisdictions, including Nova Scotia, Alberta and British Columbia."
NDP Leader Alison Coffin said she won't be supporting the proposed changes, arguing that it doesn't help people right now and the government should look at other solutions, like a $15 minimum wage.
She said changing the pension legislation is "misguided."
Independent MHA Paul Lane said he supports the changes, noting he knows people who would benefit from accessing these funds, but said the issue could have been communicated more clearly.
© Ted Dillon/CBC Service NL Minister Sarah Stoodley is spearheading proposed changes to legislation to allow some people to unlock their pensions.
Stoodley said last week that if the amendments passed, banks would need several months to get the appropriate paperwork in order for unlocking to begin March 1 at the earliest.
She said last week that requests for the change had doubled since COVID-19 hit.
Stoodley said last week that if the amendments passed, banks would need several months to get the appropriate paperwork in order for unlocking to begin March 1 at the earliest.
She said last week that requests for the change had doubled since COVID-19 hit.
ASKED FOR BY WHOM - LOBBYISTS OF COURSE
The federal government and several provinces, including Ontario, allow pension fund unlocking. ALL PASSED BY CONSERVATIVE GOVERNMENTS
People who contribute to a pension, or retirees drawing from one, would not be eligible to unlock their funds under the proposed amendments.
The federal government and several provinces, including Ontario, allow pension fund unlocking. ALL PASSED BY CONSERVATIVE GOVERNMENTS
People who contribute to a pension, or retirees drawing from one, would not be eligible to unlock their funds under the proposed amendments.
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