Quote:
Originally Posted by iggy_oi
They could look to increase employee contributions. That is an option. As for making up the $6billion, the existing pension had a $1billion surplus in 2015, now that is not guaranteed to continue, but it does show that the $6billion Gap could be closed on its own. Why not try to come up with some sort of safeguard rather than simply eliminate the plan all together? It just doesn't seem to me that going with what their proposal is the only way to fix the problem, infact their proposal seems to guarantee a deficit since less and less employees will be contributing to the old plan while more and more will be getting paid out from it.
|
Because it doesn't account for the aging work force issue that Canada is having. The losses will probably accelerate, when you show a one year profit on a pension plan, its not the sign of pension health, it might be a sign of less workers retiring, maybe because of the Conservative short increase in pension age.
What you're talking about is a hope and a prayer strategy, well we showed a profit this year, so double meats for everyone.
At the end of the day a pension with a 6 billion dollar deficit is more likely to collapse under its own weight then rebound.