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Canada's Pension Problem

December 04, 2012
Canada's Pension Problem

A plain English video about a complicated matter - expensive government employee pensions costing Canadian taxpayers a fortune!

By
on December 06, 2012
Let's find ways to enhance individuals' savings options so that they can save fro their retirement rather than funding bank profits through RRPSs. PRPPs and DC savings plans. Clearly we need to enhance CPP and/or make DB pension plans available for ALL Canadians. Unless Canadians are willing to put 15-20% of their income aside into a pension plan every week, AND pay into CPP, they will not be able to afford a secure and dignified retirement as those with DB plans do. DB plans, including those in the public sector, are funded by payroll deductions from the employee compensation. Just as it should be. Make it possible for ALL Canadians to have a portion of their compensation paid into a pension plan EVERY week. The alternative is what we are seeing today where the average RRPS savings on retirement have dropped from $120k to $66k in the last decade. Where do you think these people will be getting the money to supplement their average $6k in CPP? That's right, from the government. CTF, if you want to save taxpayer money, push for DB plans for ALL Canadians

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By
on December 09, 2012
Even the private sector ones have huge unfunded liabilities. You'd be hard-pressed to find a single government DB pension plan that doesn't have an unfunded liability. In fact, I don't know of a single one. DB plans are too risky for employers and employees alike. Surprise shortfalls rocket up contribution rates. No question Canadians need to save more money, but it's virtually impossible to do, when they're having to foot the bill for massive shortfalls in government employee pension plans.

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By
on December 12, 2012
What the Taxpayers Federation does not tell Canadians is that Federal pensions take a major hit at age 65 when the CPP kicks in. The plans are integrated, meaning that the DB pay out is reduced, in many case, by the entire equivalent of the annual CPP. Also, any under funding that may exist is a direct result of the Federal Government robbing the plan and squandering the money elswhere. If Private/Corporate sector shareholders in this country were not so greedy, most Canadians could have some sort of a Direct Benefit Pension plan. It's easy to bash Public sector workers. It gives Governments the validation they need to make deep cuts. But the end result is and will be a loss of services to Canadians. The Federal Government is no longer an employer of choice in this country. Many trades are now paying 25-50% more in wages than the Federal Government is.

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By
on January 02, 2013
Colin Craig does a very poor job of fully explaining these two plans for the general public. (1) the people contributing to these two plans contribute every year for approximately 35 years as opposed to those(their choice) in the private work place who most likely worked occasionally each year, part time or were self employed. (2)The employees paying in to the defined contribution plan and the defined benefit plans earned more in wages because of the level of skill their employer demanded of them (most cases the government elected by the majority)thus paying higher taxes on earnings,purchases,property etc.over the 35 year period as well as spending more to support the economy in post reirement years. (3)in Craig's demo video he adds twice the amount of interest earned in both the defined plans as opposed to the private sector RSP contribution plans, nor does he mention that the government controls the two defined pension plans and that this is why they are so under-funded.The government has taken money out of these plans to fund other programs they over spent, as well as taking contribution holidays due to their poor budgeting and management. (4)I would venture a guess that the money "borrowed" from the two defined pension plans was used to top up the outragious pensions and wages the politicians are paying themselves to do nothing but divide the people in Canada.I would suggest that Craig spend more time attacking the members of parliament and having their pensions and benefits reduced and getting more money and benefits for the lower/middle income citizens for their retirement as opposed to taking away from the people who were dedicated and diligent employees working to serve in an honest decent manner to help the rest of Canadian citizens.

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By
on January 03, 2013
Sending information and opinions to you is like talking to a politician. You only want to listen or express your own opinion.

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