Ottawa nudges Boomers to stay in the harness

The federal government agreed Tuesday to cap Air Canada’s pension funding obligations over the next seven years provided the country’s largest carrier agreed to certain conditions, including freezing executive compensation at the rate of inflation and halting all special bonuses. The decision will provide some much needed stability to Air Canada, which saw its pension solvency deficit swell to $4.2-billion at the start of 2012 largely due to the ongoing low interest rates in Canada and poor equity markets throughout the recession.

The federal government agreed Tuesday to cap Air Canada’s pension funding obligations over the next seven years provided the country’s largest carrier agreed to certain conditions, including freezing executive compensation at the rate of inflation and halting all special bonuses. The decision will provide some much needed stability to Air Canada, which saw its pension solvency deficit swell to $4.2-billion at the start of 2012 largely due to the ongoing low interest rates in Canada and poor equity markets throughout the recession.

OTTAWA — Federal Finance Minister Jim Flaherty says now is still not the time to enrich the Canada Pension Plan. Flaherty says the subject will again be up for discussion on Sunday and Monday when he meets with his provincial counterparts in Ottawa. A number of provinces, led by Ontario, are pushing for a modest enhancement of the national plan as a way of dealing with the fact many Canadians have no company pension plans to fall back on when they retire.

OTTAWA — WestJet Airlines Ltd is concerned about special treatment for its main competitor, Air Canada, which is seeking leniency over a gaping pension fund deficit, and records show that WestJet launched a concerted lobbying campaign with the federal government over pensions.

Time was when retirement meant a move to a community where all your neighbors belonged to the same generation: Old. No more. As baby boomers begin to retire, they're going their own way -- or ways -- when it comes to housing choices and relocation strategies.

OTTAWA — New research from TD Canada Trust suggests boomers are taking on an added financial burden as they prepare for retirement — their “boomerang kids.” The report, based on an survey by Environics Research, shows boomers are stepping up at a time of high youth unemployment offering their children help from free room and board to paying off credit cards.

Calin Rovinescu, Air Canada chief executive, is fond of comparing his lengthy career at the country’s largest carrier to a baseball game. And he says he isn’t in his fifth inning yet, and has no interest in bringing in a reliever to finish the game. The challenges Mr. Rovinescu has faced at Air Canada  have been about as unpredictable as R.A. Dickey’s knuckleball and as fierce as Bryce Harper’s swing.

OTTAWA — Finance Minister Jim Flaherty says there still isn’t enough support from the provinces to expand the Canada Pension Plan. But Flaherty, who spent the day meeting with his provincial counterparts, says the issue is far from dead. He says Ottawa and provinces will work for the next six months to map out a strategy for moving ahead. He says ministers want to establish “triggers” on GDP growth and employment that would permit expanding the pension program without risking damage to the economy.