Monthly Archives: December 2010

Need to buy more gold-plated pension?

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December 24, 2010
Need to buy more gold-plated pension?

In the NY Post there is an article about the difference between retirees in the public sector and those in the private sector. It highlights some of the rhetoric used to identify the difference. Defenders of public employee pension systems often make the case that pension benefits are not all that generous. The outrageous...
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Ministers Agree to PRPP … now the hard part

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December 20, 2010
Ministers Agree to PRPP … now the hard part

The UK NEST Plan .3% Management Fees It appears that Canada the country is on track to solving the pension predicament.  The Finance Ministers from all provinces have agreed to go ahead with the plan introduced last week by Flaherty, the federal finance minister. He calls the plan the Pooled Registered Pension Plan. The...
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The Pooled Registered Pension Plan

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December 16, 2010
The Pooled Registered Pension Plan

There was some very big news today from the office of Finance Minister of Canada.   He released a report recommending that a new Pooled Registered Pension Plan to be established in Canada. It appears that the idea of enhancing the CPP is no longer viable and the PRPP is in play.  Benefits Canada reports:...
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Pension Replacement Levels

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December 16, 2010
Pension Replacement Levels

What are fair income replacement levels? Why do we pay 70% replacement pensions for public sector employees? Many will retire with a higher standard of living  and with more disposable income than they had while working.  Other sources of personal income are not taken into account. What is a fair replacement level?   Public sector...
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Pension limits for public sector pensions

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December 15, 2010
Pension limits for public sector pensions

Pension limits for public sector pensions  No information is available regarding the amounts paid to current retirees in public sector. For example how many earn more than $200,000 in pensions, how many are over $150,000 and how many are over $100,000? Many states require this disclosure as part of the Sunshine Laws that many...
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Fair contributions for existing employees.

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December 14, 2010
Fair contributions for existing employees.

 Cartoon from the terrific editorial cartoon staff at the St John Telegraph-Journal Currently the federal public sector contributes 8.4% into a plan that is worth about 34% of salary. The taxpayer is left picking up 25.6% of the existing plans. Changes be made to the existing plans to make them more fair?  PSP Pension profile ...
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Essential elements of pension reform in Canada – Part I

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December 13, 2010
Essential elements of pension reform in Canada – Part I

It is recognized that retirement savings pensions in Canada are in crisis, at least for the private sector. Of course there is no crisis for public sector employee pensions, because they are backstopped by taxpayers. Canadian Finance Ministers head to Kananaskis for meetings on December 20, 2010. The prime item on the agenda is...
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How much is enough?

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December 7, 2010
How much is enough?

As we head towards the finance meetings in Kananaskis there is much debate on the issue of pensions. Most Canadians are unaware and have minimal knowledgeable of the real issues surrounding pensions in Canada. The photo above is from a magazine issue this year from Reason magazine. It describes what has happened in Canada...
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