Unfunded pension liabilities are a burden

While the letter writer and I agree there is a ‘pension crisis’ in Canada, our perspectives could hardly be more different.

To the Editor,

Re: Pension crisis is real and it’s concerning, Letters, Sept. 22.

While the letter writer and I agree there is a ‘pension crisis’ in Canada, our perspectives could hardly be more different.

While she sees Canadians as being incapable of planning and saving for their future, I see unfunded pension liabilities that burden and threaten our ability to save. Former Prime Minister Harper recognized that people begin contributing later than in the past while living on pension earnings for a much longer time, necessitating a slight increase in year of eligibility for a future generation. Prime Minister Trudeau rolled back that legislation while mandating an increase in contribution levels by both employee and employer.

More than 3.6 million government employees enjoy the prospect of a fully indexed, defined benefit pension plan. Provincially, Ontario alone has more than one million public employees. Every additional dollar contributed by them will be matched with a dollar from their employer, the Canadian taxpayer. Millions of prudent, careful savers, many of whom have no pension plan, will be taxed to improve the latter years of those with generous, guaranteed defined-benefit pensions. Unfunded public pension liabilities are estimated to exceed $300 billion, or more than $9,000 for every Canadian man, woman and child.

The letter writer claims that we are all “subsidized” due to unpaid tax on our personal savings being “owed to society.” Has she conveniently forgotten that those savings are taxed as they are withdrawn?

Randy O’DonnellNanaimo

 

To the Editor,

Re: Pension crisis is real and it’s concerning, Letters, Sept. 22.

This letter to the editor is loaded with misinformation and demonstrates a lack of understanding of basic finance and economics. The letter relies on outdated socialist dogma for whichVenezuela’s current crisis is a prime example.

In light of the debate over the CPP and old-age security, we can readily examine how Canada’s system stacks up against other countries around the world. The Mercer Melbourne Global Pension Index Report in 2015 ranked Canada’s retirement income system seventh out of 25 countries. There is room for improvement, but Canada’s system is solvent. Moreover, our national per-person debt is lower than many other countries.

As a former business owner, the proposed changes to the CPP will adversely affect small businesses and the self-employed. Consequently, business will have less capital to invest in growth and expansion, which would then increase employment opportunities.

Anthonie den BoefNanoose Bay

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Nanaimo firefighters’ burn fund video wins people’s choice award

Firefighters film gag video based on a burn camp water fight tradition

Designs come in for proposed student housing across from NDSS

City of Nanaimo reviewing development permit application for 160-unit Wakesiah complex

Nanaimo cat with a disability can still teach foster kittens ‘how to cat’

Life goes from sour to sweet for Lemon, an adopted cat from B.C. SPCA Nanaimo

Protesters in Nanaimo call for greater protection of old-growth forests

Extinction Rebellion organized rally at Maffeo Sutton Park on Saturday afternoon

Nanaimo River Road ‘hotspot’ for theft from vehicles, says RCMP

Over dozen reports of theft in past month, say Nanaimo RCMP, many victims were headed to backcountry

Nanaimo cat with a disability can still teach foster kittens ‘how to cat’

Life goes from sour to sweet for Lemon, an adopted cat from B.C. SPCA Nanaimo

NHL playoffs: Canucks to meet St. Louis Blues in Round 1

Vancouver takes on defending champs beginning Wednesday

Vancouver Island team takes on wacky challenges of world’s largest scavenger hunt

Greatest International Scavenger Hunt taking place Aug. 1-8

Vancouver Island films sought for One Minute Mobile Movie Challenge

All entries to be screened online in virtual film festival

Drive-in movie screenings next week will benefit Nanaimo food bank

Fortis B.C. and Fresh Air Cinema holding fundraisers at Woodgrove Centre

City to begin Metral Drive ‘complete street’ roadwork in August

Phase 1 includes seven raised intersections, sidewalks, cycle track

Nanaimo RCMP’s space needs prompt city to assess its properties in that area

Council approves $120,000 to develop real estate strategy for ‘civic precinct’ in the Old City Quarter

Simon Cowell breaks his back falling from electric bike

Incident happened at his home in California

Unofficial holidays: the weird and wonderful things people celebrate around the world

On any given day of the year, there are several strange, silly or serious holidays to observe

Most Read