MPP Teresa Armstrong tables motion to strengthen pension protections for Ontario workers

QUEEN’S PARK — Shadow Minister with responsibility for Childcare and Pensions, Teresa Armstrong (London–Fanshawe), introduced a motion urging the Ontario government to raise the pension guarantee under the Pension Benefits Guarantee Fund (PBGF) from $1,500 to $4,500 per month and to index it to inflation.

“For too long, workers who have spent their lives contributing to pension plans have been left in the dust when companies go under,” said Armstrong. “This motion is about keeping promises and making sure that retirees are not left scraping by while executives walk away with their pockets, and wallets, full.”

Ontario’s PBGF was established in 1980 to protect defined benefit pensions in cases of corporate bankruptcy. But the maximum monthly payout has only increased by $500 in over four decades, falling far behind the cost of living. Today’s cap of $1,500 per month is less than minimum wage, while the fund has nearly $1.2 billion in surplus and is funded entirely by employers.

The motion calls on the Ontario government to:

• Raise the monthly pension guarantee to $4,500
• Index the guarantee to inflation to ensure it stays in line with rising costs
• Reinforce Ontario’s commitment to retirement security without burdening taxpayers

“Ontario is the only province with a pension guarantee fund,” said Armstrong. “We should be setting an example and leading the country on retirement security, not leaving workers behind.”

Armstrong echoed the call for urgent legislative action emphasizing that this change is both affordable and necessary to ensure that people who have worked hard their whole lives can retire with financial safety and dignity.