Federal Employee Pension Reforms: First Steps - on a Much Longer Journey
AbstractWhile 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. The authors argue argue that more sweeping reforms are needed to achieve better funding and a more reasonable division of obligations and risks between taxpayers and public servants. The guaranteed incomes those plans promise participants are far more valuable, and their costs and obligations on taxpayers are far larger, than reported. Currently before Parliament, the new provisions include increasing employee contributions to the plans and raising eligibility ages for new employees' benefits. But the flaws in Ottawa's employee pension plans are so serious that these steps should - and almost certainly will - not be the end of the journey.
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Bibliographic InfoPaper provided by C.D. Howe Institute in its series e-briefs with number 140.
Length: 7 pages
Date of creation: Nov 2012
Date of revision:
Publication status: Published on the C.D. Howe Institute website, November 2012
Pension Policy; Governance and Public Institutions; Canada; pension plan reforms; Public Service (PS) pension plan; MPs' pension plan;
Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
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- Philippe Bergevin & William B.P. Robson, 2012. "More RRBs, Please! Why Ottawa Should Issue More Inflation-Indexed Bonds," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 363, September.
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- Alexandre Laurin & William B.P. Robson, 2011. "Ottawa's Pension Gap: The Growing and Under-reported Cost of Federal Employee Pensions," e-briefs 127, C.D. Howe Institute.
- Alex Laurin & William Robson, 2013. "Prudence and Opportunity: A Shadow Federal Budget for 2013," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 375, March.
- Adam Found & Peter Tomlinson, 2012. "Hiding in Plain Sight: The Harmful Impact of Provincial Business Property Taxes," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 368, December.
- Richard Guay & Laurence Allaire, 2013. "Long-Term Returns: a Reality Check for Pension Funds and Retirement Savers," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 395, December.
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