Canadian pensions made it to Zero Hedge...
A Crisis in the Making?
-snip-
On Wednesday, the Gazette published its third editorial, Pension woes won't be easy to fix, stating that the problem isn't in public pensions but private pensions. I beg to differ. The pension crisis may touch the private sector first, but it's only a matter of time before it reaches the public sector. Importantly, if we don't fix the major governance gaps at the large public pension plans, another disaster similar or even worse than 2008 will occur. When it comes to fixing pension woes, tough political decisions will need to be taken and stakeholders need to significantly improve the governance at major public plans.
Also on Wednesday, Daniel Leblanc and Bill Curry of the Globe and Mail report that Ottawa targets public service pension plan for cutbacks. A proposal is circulating to put an end to early-retirement provisions for new hires:
The Conservative government raised the possibility this month of going after the bureaucracy's pension plan as it looks for ways to deal with a ballooning deficit. But senior civil servants are also concerned that too many bureaucrats retire in their mid-50s, causing staff shortages that are set to worsen in coming years. Any major change to the Public Service Superannuation Act, however, will be stiffly opposed by unions, which are trying to contain the growing criticism of their members' plans in an era of dwindling private-sector pensions. One of the most controversial aspects of the federal pension plan is the ability to retire with a full pension at age 55, after 30 years of service.
Federal officials expressed concerns that the provision is “reducing the pool of staff with experience,” with half of the executives in government eligible to retire by 2012.
Want to take a stab at which issue will become the next politcal powder keg in Ottawa and around the world?
zerohedge.com
Jim |
