Quote:
Originally Posted by Slava
Right, but let's be honest, those aren't the type of pensions that this is really about. There's a fight brewing in this area because there are some of these pensions where the benefits are expensive, we've seen deficits through the years which are in the billions of dollars, and of course the beneficiaries of those plans aren't inclined to see those benefits reduce.
These days it's commonplace to compare Calgary to the "next Detroit". While I tend to think that characterization isn't quite accurate, this is an area where it's certainly interesting. Public sector pensions caused a lot of issues for them!
I have zero issue with most of these roles having a pension plan, btw. I think those plans are socially and economically very good for society. What I do object to are the defined-benefit plans for public sector workers. Why should we (tax payers at large) guarantee someone a living for their entire lifetime? That's effectively what these are suggesting. And yeah, I'm off on a little rant here, but let me be clear...times have changed. Decades ago, an employee would work until age 65, retire and in a lot of cases pass away within about a decade. They worked say for 35-40 years in one organization and effectively paid their dues to get that extra decade or so in compensation and benefits. This isn't what you see today. Many of these plans offer early retirement provisions to begin at 55 or earlier. People might work for say 25-30 years in that role, and we live longer. In my profession I plan for people to live to 95 because the percentages are that high that we can't assume less! So consider this...you take a role in the public sector and work from 25-55, so 30 years. Our system as it stands pays you a salary in that role from age 25-95...how does that make sense? Why would anyone think they ought to be paid for 60 years, when they work for 30? How does that make sense in a world where we see these plans more infrequently because the deficits are incredibly difficult to manage and plan for?
tl;dr I'm generally opposed.
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good post.
I guess was only looking at it form someone in my position.
looking at my pension statement projections, I'm not getting any huge salary if I can make it to retirement age at my job. it will help, of course, but I'm sure not living off it.
sometimes I think I should be like my dad. he pissed away every cent he had, didn't pay taxes for years and then when the time came, was taken care of quite nicely on the taxpayer dime.
didn't seem fair, and still bugs me.