Fed help sought for Canadian pensions

TORONTO, Oct. 29 (UPI) -- Lobbying efforts have begun by cash-strapped major Canadian companies for federal relief from pension obligations, executives said.

Global economic turmoil has seen large shortfalls develop in corporate pension funding, and Toronto pension consultant Jeff Kissack of Watson Wyatt told the Globe and Mail existing legislation could ruin companies and not-for-profit organizations.

Since the beginning of the year, Canada's S&P/TSX composite index has fallen about 37 percent and the Canadian dollar has been on a roller coaster ride.

One executive who asked not to be identified told the newspaper there would be dire consequences unless the finance department offers help to companies.

"If you actually force some of those companies out of business, it would be a disaster for the poor pensioners who only get 70 cents on the dollar or 80 cents or whatever it was at that point," the executive said.

An unidentified federal finance official told the Globe the situation was being assessed, but offered few other details.

"The government is closely monitoring developments related to pension funding," the official confirmed.