Some Pension Numbers

July 10, 2016
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HOW BIG IS IT?

A discussion on pensions is always hard because the numbers are so abstract. It is this difficulty to understand the size of the numbers that has allowed the public sector to create so much wealth for themselves.

Pension Ponzi the book we wrote had this to say about pensions

This book will open your eyes to one of the greatest legal asset re-allocations in the history of the world. Some call it pension envy, some call it pension apartheid. We call it a Pension Ponzi plan, an unsustainable funneling of money from one group of Canadians to another. Canadians are being bilked out of their hard-earned money and cheated of secure retirements in order to gold-plate the pensions of those who have engineered the system in their favour.

In 2008 there was a tremendous financial markets meltdown. It had a huge impact on pensions. The shortfalls increased substantially and of course had to be bailed out by taxpayers.

In 2002 public sector employee pensions collected $8.4 billion in contributions from employees and taxpayers. This year in 2016, that number will be over $36 billion. Thats money that taxpayers thought  they were putting into government services for healthcare, education and social services but went into the plans of government workers.