You are paying for a pension, but it is not yours!

For most Canadians, retirement income is less than what it should be.  Add insult to injury!  The Federal Government Civil Service Pension DEFICIT is 200 billion.  As a taxpayer, you will be asked to fund someone else’ pension before your own.

 There are 4 considerations that are proposed for changes related to public-sector pensions:

1.         The Government is proposing to move the contributions for its employees to be on a 50/50 shared basis between employer and employee. At this level, annual contributions into the
plans will be 25.8% of salary.

However, the C.D. Howe Institute has pointed out that funding the true cost of pensions to the civil
service requires  contributions that are in the range of 40 to 50% of alaries!

The Government should make sure that the contributions really do cover the true cost of future obligations – shared on a true 50/50 basis.

2.         The Government should begin placing all new employees in a Defined Contribution plan or, at minimum, a hybrid plan like the pension at Air Canada, that takes much of the onus and risk off of taxpayers – now and into the future.

3.         The Government should reduce the incidence of early retirement, and in the process make sure that the retirement age is the retirement age, and that it is not overridden by an age-plus-years-of-service concept like it is today.


4.         Changes must be made for existing employees as well.

The current shortfall in the federal civil service pension that is in excess of $200 Billion is due to provisions made to current employees, so these employees must be part of the solution.

Research provided by the "FAIR PENSIONS FOR ALL" organization.

Ted Wernham
Ted Wernham
Ranked # 1 in London by MDRT, the Premier Association of Financial Professionals. retirement income manager, Host Retirement Ready! Radio on AM1290 Ted Wernham