Rather, Canada Post says, the lockout notice allows the carrier to "take measures that are necessary to respond to the changing business reality." But Ottawa has deemed Old Age Security, Canada Pension Plan, Working Income Tax Benefit and the Canada Child Benefit cheques "essential" — even during a labour disruption. That's different from the defined benefit plan that current members get, which guarantees a fixed benefit regardless of investment returns. Spokesman Jon Hamilton said Canada Post has a memorandum of agreement with the union "where the federal socio-economic cheques will be delivered." Canada Post's pension plan posted an annual surplus of $1.2 billion last year, but has a solvency deficit of almost $6 billion, the fund's annual report shows.

Source: CBC News July 05, 2016 07:08 UTC