Quote:
Originally Posted by CaptainCrunch
I don't think there's another way. There are three things that can happen with a pension that's 6 billion in the hole
1) You keep running the status quo where you don't change it, the number of workers collecting it on retirement increases, and it goes bankrupt and everyone loses their pension
2) At some point it becomes an emergency and Canada Post goes to the government for a 6 billion dollar pension bailout, and the government frankly has to refuse to do it.
3) You set a cut off date and new employees go on a new pension program that makes more sense and allows the pension to be in place down the road.
oh wait theres a fourth
4) The union and union employees top up the pension so it doesn't collapse.
I don't see any other way.
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You say you don't see another way, so I'm just curious, what in the current proposed plan is going to fix the $6billion deficit? It might not make it worse, but nothing I have read has explained how it fixes it. All the new hires will be paying into their new plan, but what part of that addresses the deficit? I see a higher chance of making the problem worse by having fewer people pay into the plan since the existing numbers will dwindle as the current employees retire so there will be an increase in payouts with a decline in contributors.