Ottawa’s Hidden Deficit: The Widening Gap between Federal Government Pension Liabilities and Assets
Ottawa’s unfunded liabilities for employee pension plans rose to $272 billion in 2013, far larger than reported, according to a new C.D. Howe Institute study. In “Ottawa’s Hidden Deficit: The Widening Gap between Federal Government Pension Liabilities and Assets,” authors William B.P. Robson and Alex Laurin find the value of federal employee pension promises is […] Evaluating Public-Sector Pensions: Are Federal Public Servants Overpaid?
Federal public servants have pension guarantees in their defined-benefit pension plans that are mispriced, causing Ottawa to seriously underestimate the cost of the pension plans and the total compensation of its employees, according to a report released today by the C.D. Howe Institute. In “Evaluating Public-Sector Pensions: Are Federal Public Servants Overpaid?” respected pension expert […] Evaluating Public-Sector Pensions: How Much Do They Really Cost?
While public debate has mainly focused on the “gold-plated” defined benefits of many public-service pension plans, the real problem lies in a flawed approach to managing compensation costs, according to respected pension expert Malcolm Hamilton. In, “Evaluating Public-Sector Pensions: How Much Do They Really Cost?” Hamilton says the problem is government sponsors who typically underestimate […] Helping Ontarians Save for Retirement: How the Province Could Adapt the Canada Supplementary Pension Plan
As Ontario pushes ahead with pension reform to improve retirement security for its citizens, it should consider a “middle-way” solution between current competing visions for reform, according to a report released today by the C.D. Howe institute. In “Helping Ontarians Save for Retirement: How the Province Could Adapt the Canada Supplementary Pension Plan,” author Keith […] Long-Term Returns: A Reality Check for Pension Funds and Retirement Savings
Low investment returns loom in the decades ahead, spelling bad news for retirement savers and pension plan managers, according to a report released today by the C.D. Howe Institute. In “Long-Term Returns: a Reality Check for Pension Funds and Retirement Savings,” authors Richard Guay and Laurence Allaire challenge widely used “optimistic” assumptions for investment returns […] ‘Big Cpp’ At The Young’s Expense: Globe & Mail Op-ed
Published in the Globe & Mail on November 12, 2013
By William Robson
Chronically low investment returns on inadequate saving are making more Canadians worry about retirement. Fair enough – but the bigger Canada Pension Plan many unions and provinces are pushing is a bad response. Durable pension improvements for people currently working must rest on more saving by those same people. Instead, “Big CPP” threatens another wealth grab at the expense of the young.
Advocates for a CPP that covers earnings up to a higher cap or replaces more of those earnings stress that the CPP is mandatory, has low investment costs and offers defined benefits. They typically play down how a bigger CPP would take more from…
Ontario Pension Policy 2013: Key Challenges Ahead
After five years of smaller reforms, Ontario should get on with fixing major shortcomings that remain in its workplace pension system, according to a report released today by the C.D. Howe Institute. In “Ontario Pension Policy 2013: Key Challenges Ahead,” author Barry Gros identifies the main flaws of the current system and urges the government, […] Flaherty Has A Chance To Complete Ottawa’s Savings Revolution: Globe & Mail Op-ed
Published in the Globe & Mail on March 20, 2013
By Finn Poschmann
Every once in a while, budget day brings something truly big that people fail to appreciate until much later.
Something big happened with Canadians’ savings in the 2009 budget, when tax-free savings accounts appeared. The change has repercussions that will reverberate, mostly to the good, for generations to come and will make Canada a world leader in the savings and tax field.
From a standing start, the number of Canadians holding TFSAs has jumped from zero to about nine million, or about one-third of taxpayers. If you had said about a decade ago, when Rhys Kesselman of Simon Fraser University and I first proposed the Canadian TFSA…
The pension crisis deepens: Canadian Business Column
Published in Canadian Business on February 20, 2013
By William Robson
St. Augustine famously prayed, “Grant me chastity … but not yet.” Just like the 4th-century saint, Canadians are struggling to get from words to deeds—but in our case it’s our finances. We know saving is good. We know we need to be thriftier, to build our resources and pay down our debts and prepare for retirement. We want to be better. But not yet.
Canada’s household saving rate is less than 4%, and our appetite for housing has made us net borrowers every year since 2001. But we’re not just failing as individuals. Pension plans—the institutions entrusted with our future livelihoods—are also caught between our desire to live well in the future and…
Federal Employee Pension Reforms: First Steps – on a Much Longer Journey
While Ottawa’s proposed reforms to the pension plans of federal employees and MPs are a move in the right direction, the deep flaws in these plans require more fundamental revisions, according to a report released today by the C.D. Howe Institute. In “Federal Employee Pension Reforms: First Steps – on a Much Longer Journey,” authors […]Pooled Registered Pension Plans: Pension Savior – or a New Tax on the Poor?
Ottawa should rethink the tax rules for Pooled Registered Pension Plans (PRPPs) or they will not realize their potential to be a good pension savings vehicle for Canadians, according to a report released today by the C.D. Howe Institute. In “Pooled Registered Pension Plans: Pension Savior – or a New Tax on the Poor?” authors […] Annuities and Your Nest Egg: Reforms to Promote Optimal Annuitization of Retirement Capital
Retiring babyboomers are driving a shift from retirement-fund accumulation to decumulation, but they need better choices to protect against longevity risk, according to a report released today by the C.D. Howe Institute. In “Annuities and Your Nest Egg: Reforms to Promote Optimal Annuitization of Retirement Capital,” the University of Calgary’s Norma Nielson says to enhance […]