Federal Pension Plans Even Worse Off Than Thought: CD Howe

Here’s an email from our blog letter bag that I found very interesting:

With the economy shrinking and the work force getting smaller because of the Baby Boomers retiring how are different layers of government going to pay for these pensions? Right now, the government has its financial hands tied because of lost revenue, as world economies are in the tank. I realize B.C. is not as bad as the American economy and the disaster in Europe, but we are going to get hit just the same since this is global meltdown not seen since the Second World War.

Nobody in the government wants to face up to fact there isn't going to be enough funds to pay for these pension plans, especially the ones that the last premier gave to himself, his caucus and the NDP . Am I right or wrong in thinking?

Robert Slomen
Delta

Robert, you are bang-on in your diagnosis. Yesterday, just hours after I received your email, the CD Howe Institute released a report showing the federal government’s unfunded liability for public sector pensions is now $227 billion--$80 billion more than Ottawa has previously reported.

From the report summary:

1. As private-sector pension providers and individual savers know, low rates of return require them to save more to fund desired incomes in retirement – a fact reflected in solvency valuations of private-sector pension plans, which must use market yields to value their promises.

2. Public-sector pension plans, however, typically do not use market yields to calculate their liabilities: if they did, Ottawa’s unfunded pension liability would stand at $227 billion – some $80 billion larger than reported in the Public Accounts.

3. The value of the typical federal employee’s pension entitlement grows at more than 40 percent of pay annually – much faster than the contributions to fund it – putting taxpayers, most of whom face federal tax rules preventing them from funding as rich a retirement for themselves, at risk of having to bail out Ottawa’s pension plans.

So the bad news for those of us in the private sector: not only are we not saving enough for our own retirements, we are being gouged by our elected officials and bureaucrats to pay more for theirs!

By: Jordan Bateman
Posted: December 14, 2011
Topic: Federal

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Comments

what do you think Harper is

what do you think Harper is building the Jails for who do you think he plans on putting in them and who do you think is going to get the money from them ??? Government workers and elected officials pensions are covered they did it in the States and got away with it for two decades before folks got wise so they will most likely do it here for 4 decades before folks say hay how come only the poor and young are in jails and the only jobs are for guards and they get privatized and owned by guess who LOL fools it is coming soon to a province near you or whoops your own province most likely Thanks Harper. Homeless solution solved low employment solved all by tax payers money building government owned Jails that will be sold off to private owners who will then run them for a profit. Check out states they did it there a few times and here being a police state and when the riots start here they cause they will have homes for tax payers too when they go broke. or bankrupt or jobless and homeless and there kids who cant find work and become wild with boredom and fear of having no future or enough to eat

URGENT if you stand a chance

URGENT if you stand a chance of becoming old or sick or of being injured and unable to earn a living anymore or for extended period of time you may like to know the money being taken out of your pay check each and ever pay day which has been increased 300 % in the last decade will not really go to you. Well what about disabled taxpayers? They did note that they do treat employment security payments (unemployment checks) the same way wow no kidding for the whole year or what you get E.I. or U.I. or B.S. what ever they call it now>. And did i mention no pension goes untouched for the poor worker or defender of liberty and democracy so yep Veterans Pensions(shame on you all) get treated the same (unearned)(how they can even say that with a straight face in one breath eludes me and not get punched out)but only these. Yes Folks earned incomes are extended benefits plans for government workers or elected officials. And $500 a month if you can work part time even though you are disabled . ?? That one got me too! That hardly anybody seems to have heard of. Is it because maybe only government workers or elected officials can have the extended benefits package at there own discretion and I am sure most of them turn down a guaranteed income above all others that is exempted from any type of deduction by all other forms of support government or private programs. (OH as the Charter of Rights states it is suppose to be for all of us) Are Canada Pension Plan disability income is called UNEARNED INCOME it is called this for the soul purposes of allowing Provincial governments to claw it back by taking it away from disabled,sick and injured tax payers. People whom are in there most vulnerable state are spit on discarded and have there Human and Charter of Rights taken away and allowed no recourse to get there rights protected by the very governments that are suppose to be there to do it. I tried as did many others some went to jail others kicked off disability some died some homeless now. all so they can deny disabled folks about on average $500 a month to help them to care for themselves. Even though it is a direct violation of Charter of Rights and the Human Rights of Canada and Provinces they are still doing it. at last count out 50,000 people whom are on disability in B.C. only 5600 of them collect Canada Pension Plan disability and the main reason is because they are the only ones who worked and paid taxes long enough to deserve it. Yet they are the only ones who get it stripped away and legislated into deeper poverty by callous government elected officials and supporting government workers aka Teachers Union etc. Oh yes my friends if you ever stand a chance of getting old or being injured or becoming ill your C.P.P. disability income will be called unearned income by both public and private institutions for the purpose of clawing it back away from you.

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