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 much larger than shown on the books, and still growing. “Using an economically meaningful fair market value estimate, Ottawa’s unfunded liability at the end of the 2013 fiscal year was some $120 billion higher than reported,” said Robson. “Few taxpayers are aware of this burden or the risks they bear in backstopping these plans.”