Over the last week we have seen a number of groups release reports analyzing the fledgling Public Sector Pension system. They have concluded that the Public Sector Pension system is broken and is in need of a fix. We at Fair Pensions For All agree. And so do the facts.
In 2001 Canadians contributed a total of $7 Billion into the Public Sector Pension plans. This year, Canadians have been forced to contribute a total of $30 Billion into these plans.
At the same time, Canadians have been able to contribute a total of $34 Billion into their own RRSPs. The total that these Public Sector Pension plans now have invested in them a total $840 Billion while the Private Sector employee has only been able to save $842 Billion into their own retirement plan.
" Its clear" said Bill Tufts, founder of Fair Pensions For All, " the average Canadian cannot save for their own retirement, as they are helping pay for the gold plated retirement plans of those in the Public Sector. This needs to change. Its not equitable and its certainly not fair".
Employees in the Public Sector retire on average much earlier than the rest of Canadians. For example, police in Montreal retire at age 53 for and most government workers retire at an average age of 59. It is estimated that ending early retirement for Public Sector employees would save $210 billion in pension costs. This is equivalent to the debt of all the provinces combined except for Ontario and Quebec.
Many government employees will retire with more income than working Canadians
Many government employees will retire with more income than working Canadians. A federal government employee has an average pension of $38,000 plus Canada Pension Plan of $12,500 and Old Age Security of $6,500. On top of that, there are an estimated 14,000 retired government employees in Ontario earning over $100,000 a year in pension income.
"This massive inequity has to end", said Tufts. " We can't allow the Private Sector to pay all of the bills, pay for gold plated pensions and also expect them to have enough to save for their own retirement. I encourage all governments to take a serious look at this problem, and ease the burden of the average worker in the Private Sector. These men and women deserve to be able to save for their own retirement".
Bill Tufts, Fair Pensions For All, founded in January 2009, our goal is to promote an honest and fair analysis of our pension system; to expose abuse and waste within the system; to develops and promote new ideas and concepts on pensions based on fairness for all.
We maintain that it is every Canadian’s right to receive sufficient income in retirement to afford an acceptable quality of life.
