Showing posts with label defined benefit pensions. Show all posts
Showing posts with label defined benefit pensions. Show all posts

Friday, March 22, 2013

Two Messages For Tim Hudak

I have a bit of a busy morning ahead, so just a brief post for now. I have written many times about young Tim Hudak, the lad who aspires to become Premier of Ontario through rhetoric that demonizes the public sector, public sector pensions, and unions. Apparently, constructive policy and breadth of vision are beyond his ken.

Here are two letters from today's Star that nicely capture the severe moral and intellectual limitations the leader of the Ontario Progressive Conservative Party labours under:

Re: Hudak takes aim at public sector pensions, March 18

I assume Hudak’s ambition is to ensure that no one has any money when they retire, except the rich, and of course the political whores who do their bidding. Hudak is on the same race to the bottom that the Republican Tea-Baggers advocate in the States.

Gerry Brown, Toronto

Ontario PC leader Tim Hudak shows so little interest in facts that I doubt he can be swayed by rational argument when it comes to public sector pensions. But the truth does matter, so here it is.

The pensions my members collect after a lifetime of work are far from lavish. In health care, the average retiree receives less than $19,100 a year. In the public service, it’s less than $21,800. In the colleges, it’s under $22,800. All three of these plans are in surplus. They have no unfunded liability.

Despite what Mr. Hudak says, talks between the government and pension plans cannot “fail” in our case, for the simple reason that they have already succeeded. The government asked us to keep premiums where they are over the medium term, and we were able to do that.

Public sector pension plans are a good deal for the citizens of Ontario. Through prudent investment, our plans provide more retirement security at less cost than private plans ever could.

Tim Hudak’s mistake is that he sees decent pensions as a problem when in fact they are a solution to the very real problem of seniors’ poverty. His attack on public plans masks the fact that he has no plan at all for retirement security for Ontarians — not even the private sector workers he claims to care about. Any fool can destroy a pension plan; it takes grown-up, long-term commitment to build one. Hudak should drop the right-wing blather and voice his support for expanding the best defined-benefit pension plan in the world, the Canada Pension Plan.

Warren (Smokey) Thomas, President, Ontario Public Service Employees Union

Thursday, November 29, 2012

Pension Envy

That's what Martin Regg Cohn, in his column this morning, calls the resentment stoked by the right-wing towards those who enjoy defined-benefit pensions.

In what passes for debate in the debased arena we call contemporary politics, politicians of the right, most notably Tim Hudak, have declared public defined-benefit plans unaffordable and unfair:

“Our pension system should be fair, not gold-plated for some and non-existent for others,” he began (my italics). “Generous plans are the norm for many government employees while a majority of workers . . . have no access to a workplace pension at all.”

As Cohn points out, the alternative he is advocating, Pooled Registered Pension Plans, are

...merely glorified RRSPs — they make no pretense to paying a reliable pension. The only certainty is that they will make future retirees poorer and investment advisers richer (thanks to fat management fees), while leaving all of us more exposed to the inevitable social costs of dealing with a wave of financially exposed seniors.

Yet despite that, the public clamours to bring everyone down to the lowest level rather than putting pressure on politicians to implement an enhanced Canada Pension Plan, one that would allow participation by everyone. Such reform has been demanded by several provinces, but it would seem that pressure exerted by the powerful financial lobbies have scotched that possibility for the time being.

But of course, the fate of any reform, be it political, economic, or social, ultimately rests in the hands of the electorate, the same electorate that is currently engaged in sniping at fellow citizens thanks, in part, to being such easy and eager targets for manipulation by their political 'masters.'