Quebec’s Underfunded Pension Plan Holds Lessons For Cpp, Orpp: Globe And Mail Op-ed
By Yves Trudel
The experience of the Quebec Pension Plan – Canada Pension Plan’s equivalent for the province – holds cautionary lessons for the country’s new pension options, such as the pending Ontario Retirement Pension Plan (ORPP) or proposed CPP enhancements. Without proper independent governance and rate-setting mechanisms, risks are great that the ORPP or an enhanced CPP will end up improperly funded, leading once again to more intergenerational transfers of wealth.
A recent C.D. Howe Institute report shows that the QPP’s contribution rate was set too low from the beginning, despite the advice of experts and actuaries. As the plan matured, multiple reports pointed to imminent needs for…
The Benefits of Hindsight: Lessons from the QPP for Other Pension Plans
The experience of the Quebec Pension Plan (QPP) offers serious lessons for new public pension plan options, in particular the pending Ontario Retirement Pension Plan (ORPP) and Canada Pension Plan (CPP) enhancements, according to a new C.D. Howe Institute report. In “The Benefits of Hindsight: Lessons from the QPP for Other Pension Plans,” authors Luc Godbout, […] Drawing Down Our Savings: The Prospects for RRIF Holders Following the 2015 Federal Budget
The 2015 federal budget’s reduction of the mandatory minimum withdrawals from registered retirement income funds (RRIFs) and similar tax-deferred accounts will reduce the risk that many Canadians will outlive their savings. Yet with yields on safe investments so low, and longevity continuing to increase, the risk is still material, according to a new C.D. Howe Institute […] False savings assumptions by Ontario pension planners: Financial Post Op-Ed
Published in the Financial Post on June 4, 2015
By Malcolm Hamilton
Malcolm Hamilton is a senior fellow at the C.D. Howe Institute and a former partner with Mercer. His paper, Do Canadians Save Too Little?, is published by the Institute.
Canadians frequently read that they borrow too much, spend too much, save too little, retire too early and live too long. The drumbeat intensifies during RRSP season but it is always there in the background, and has been for decades. I cannot remember a time when Canadians were thought to be saving enough.
Our undersaving problem is attributed to many things: financial illiteracy, personal irresponsibility, a lack of foresight and insufficient self-control, to name…
Do Canadians Save Too Little?
Reports that Canadians are undersaving for their retirements are exaggerated, according to a new report released today by the C.D. Howe Institute. In “Do Canadians Save Too Little?,” author Malcolm Hamilton takes a fresh look at all the assumptions and finds that Canadians are reasonably well prepared for retirement. Ottawa’s Secret Debt: The Burden and Risks of Federal Employee Pensions
The unfunded liability in the pension plans for federal government employees was $90 billion higher than the reported number in 2013/14, says a new report from the C.D. Howe Institute. In “Ottawa’s Secret Debt: The Burden and Risks of Federal Employee Pensions,” authors William B.P. Robson and Alexandre Laurin argue that the way Ottawa reports […] The Taxation of Single-Employer Target Benefit Plans – Where We Are and Where We Ought To Be
Ottawa needs to change federal tax rules so that they accommodate single-employer Target Benefit Plans (TBP), according to a new C.D. Howe Institute report. In “The Taxation of Single-Employer Target Benefit Plans – Where We Are and Where We Ought To Be,” authors Barry Gros, Karen Hall, Ian McSweeney and Jana Steele propose a tax […] Who Loses Most? The Impact of Taxes and Transfers on Retirement Incomes
Low income seniors face extremely heavy tax burdens across Canada, according to a new C.D. Howe Institute report. In “Who Loses Most? The Impact of Taxes and Transfers on Retirement Incomes,” authors Finn Poschmann and Alexandre Laurin show that seniors can be hit hard by taxes and benefit clawbacks in retirement. Target Benefit Plans: Improving Access for Federally Regulated Employees
Despite having been available for decades, target benefit pension plans (TBPs) will continue to be resisted by federally regulated employers unless a legal flaw is fixed, according to a report from the C.D. Howe Institute. In “Target Benefit Plans: Improving Access for Federally Regulated Employees,” author Randy Bauslaugh finds that TBPs are rarely adopted by federally […] The Overlooked Option for Boosting Retirement Savings: Higher Limits for RRSPs
Government policymakers should not overlook enhancing RRSPs as a way to boost retirement savings by Canadians, according to a report from the C.D. Howe Institute. In “The Overlooked Option for Boosting Retirement Savings: Higher Limits for RRSPs,” author Alexandre Laurin finds that those who most need private saving to meet their retirement income goals use […] Target-Benefit Plans in Canada – An Innovation Worth Exploring
Canadian governments need to move beyond defined-benefit (DB) versus defined-contribution (DC) pension model debates, and towards a middle-ground option that incorporates attributes of both designs, according to a report from the C.D. Howe Institute. In “Target- Benefit Plans in Canada – An Innovation Worth Expanding,” authors Mel Bartlett, Angela Mazerolle, and Jana Steele call for […] Outliving Our Savings: Registered Retirement Income Funds Rules Need a Big Update
Many retirees face dramatic erosion of their savings due to outdated government rules, says a new C.D. Howe Institute report. In “Outliving Our Savings: Registered Retirement Income Funds Rules Need a Big Update,” authors Alexandre Laurin and William Robson urge the government to re-visit its rules requiring mandatory minimum withdrawals from registered retirement income funds […]