Canada s Retirement Security Crisis. National Union of Public and General Employees (NUPGE) Ottawa, Canada: January 2012

Size: px
Start display at page:

Download "Canada s Retirement Security Crisis. National Union of Public and General Employees (NUPGE) Ottawa, Canada: January 2012"

Transcription

1

2 Canada s Retirement Security Crisis National Union of Public and General Employees (NUPGE) Ottawa, Canada: January 2012

3 MYTH1 Most public sector employees have a gold-plated pension. No, in fact the far greater majority of workers joining public sector pension plans are paid nowhere near the full pension of 70% of their salary. For example, in order for most public sector workers to retire with full pension, they need to have been working in the public service for 35 years or more and paying into their pension plan for the same length of time. In fact, the current average rate of recruitment in the public sector is around 34 years of age, which means they will not have enough years of service to collect a full pension when they retire at age 65. For example, the average pension income of a retired government employee in Ontario is just over $20,000. And for those who are age 65 and over, this also includes the amount they receive from the Canada Pension Plan. This is not what one thinks of when you re talking about a gold-plated pension. The attack on public sector pensions may be wrapped in rhetoric about fat-cat public servants, but it is really an attack on the lowerpaid workers in the public sector. [ 1 ]

4 MYTH2 Taxpayers pay for the pensions of public sector workers. It s not quite accurate to say that public sector pension plans are funded solely by tax dollars. Pension benefits paid to retired employees, regardless of whether they work in the public or private sector, are really deferred salary that employees earned over their working careers. The fact is all contributions made to public service pension funds represent part of the employee s overall compensation package. Public sector employees directly contribute anywhere from 40% to 50% to the costs of their pension plan. Each payday, they contribute anywhere from 6% to 15% of their salary. This is in addition to the 4.95% contribution they also make to the Canada Pension Plan. Almost all public sector pension plans have increased the contribution levels employees must pay in recent years. The rest of the employee s contribution (between 50% and 60%) is paid by the employer. The employer s contribution to the plan is a component of the employee s total compensation package. It s not a gift from the taxpayers or a hand-out from the employer it s a part of the employee s pay, which is really salary to be used as retirement income. MYTH3 Yes, but the contributions paid by public sector employers are subsidized by taxpayers since they are paid out of government revenues. The fact is that Canadian taxpayers help subsidize retirement savings of all workers, whether they work in the private or public sector. [ 2 ]

5 Contributions made to all registered pension plans are tax deductible for both the employee and the employer and cost Canadian taxpayers around $10 billion a year. If we truly ended taxpayer underwriting of retirement income in this country, RRSPs would go down the tubes. The RRSP program will cost the federal government over $12 billion this fiscal year in foregone tax revenues even after collecting $2.6 billion in deferred taxes on RRSP withdrawals. The program costs provincial governments more than $5 billion, for a total bill of at least $17 billion per year. Keep in mind, RRSPs benefit higher income Canadians disproportionately. Roughly one in four Canadians contributing to an RRSP makes over $100,000 a year, although they account for just 2.7% of all tax filers. Ironically, these high-income investors are subsidized at a higher rate than are average Canadians. This small elite snapped up about 30% of the roughly $17 billion in tax deductions that Canadian taxpayers pay each year to subsidize this private investment. MYTH4 Taxpayers are on the hook to cover public sector pension fund deficits when the markets decline. Some right-wing think tanks, like the Fraser Institute and C.D. Howe Institute, would have us believe that public sector pension plans are badly underfunded and that such plans will become a crushing burden on taxpayers as the bulk of baby boomers retire. The huge deficit amounts they come up with, however, are based on paper-thin analysis and creative accounting techniques not used by the pension industry. This provides very fertile ground for half-truths and distortions. The fact is that defined benefit structure of most public sector pension plans are designed to withstand economic downturns because they pool everyone s risk. It s fairly certain that, over the very long time horizon these pension plans operate, there will be pension fund deficits and there will be pension fund surpluses. In fact, through- [ 3 ]

6 out the 1990s, public sector pension plans across the country ran up some fairly huge surpluses. The recession has had negative consequences for all pension plans including those DB plans in the public sector. However, pension portfolios are diversified so that when returns are down in the stock market they may be up in another market (e.g. real estate). These plans, however, are still more able to provide stable income to participants during a down cycle than other retirement income vehicles. The key point to remember is that public sector pension liabilities go a long way into the future. If you estimate the costs of all public sector pensions for decades into the future and then present it as a bill that has to be paid immediately, you end up with a frighteningly big number. But these figures do not mean very much. Because pensions are not paid out all at once they re paid out over decades as more money comes into the plan. Also keep in mind that the large public sector pension plans in British Columbia and Ontario are managed through joint trust arrangements that require plan members and employers to share equally in contribution rate increases that may occur because of funding shortfalls. MYTH5 It s not fair for public sector workers to have good pensions when most private sector workers do not. Everyone deserves a decent pension, including workers in private companies. Inequality isn t solved by dragging everyone down to the lowest common level. Isn t a far better solution to ensure all working people have access to an adequate pension plan rather than weaken and reduce quality pension plans? And the more decent pension plans there are, the easier it will be to obtain pension plans for those workers who currently do not have one. [ 4 ]

7 Providing adequate pensions means that fewer people will be receiving the guaranteed income supplement from the federal government in their retirement years, which will save taxpayer money in the long run. It s just not right that three quarters of all private sector employers do not pay into a pension plan for their employees, effectively condemning them to poverty in retirement and having to rely solely on inadequate public pension benefits to finance their retirement. MYTH6 We should be switching to Defined Contribution (DC) plans because they are cheaper. DC pension plans are not cheaper; they are actually more expensive since management fees for DC plans are generally higher, which result in significantly lower investment returns. DC plans do not provide a pension but, instead, a sum of money that upon retirement must be re-invested to provide a monthly income. And their value on retirement may be compromised if, for example, the markets are down that day. All the risk rests with the individual worker. DC plans also do not have an economy of scale; most DB plans have the cyclical advantage of paying out benefits from a long-term replenishing source of new members as well as a large pool of investment income. This is why it is unlikely that most workers can actually save enough in a DC plan to sustain themselves through to their nineties. Most of all, we end up with a country where our retired workers do not have a decent living wage and can therefore no longer contribute to their communities. The social costs of supporting a substantially larger elderly population will increase. [ 5 ]

8 MYTH7 The pension promise of a Defined Benefit (DB) plan is out-of-date: the money isn t there. DB pension plans have been the preferred plan design for over one hundred years, particularly in large government and corporate workforces. DB plans are most successful where there are economies of scale, i.e. a large workforce and a large investment pool. So, the more small workplaces there are, the more difficult it is to negotiate DB pension plans. In the last couple of years, several Pension Commissions across the country have recommended that the large public sector plans offer pension services to small pension plans to save administrative costs and high investment management fees. Rather than say pensions are not possible anymore, these Commissions argued that we should use the expertise of our large public sector pension plans to provide contributory pension plans for workers in smaller workplaces in the public and private sectors. Only possible conclusion Defined Benefit (DB) pension plans are both affordable and sustainable. [ 6 ]

The Truth. About. Public Employee Retirement Plans

The Truth. About. Public Employee Retirement Plans The Truth About Public Employee Retirement Plans Another Risky Scheme Anumber of right-wing ideologues are trying to sell taxpayers a bill of goods. These individuals have claimed that public employee

More information

Corporate Report. Recommendation That Council receive the report Employee Pension and Sick Leave Benefits for information purposes.

Corporate Report. Recommendation That Council receive the report Employee Pension and Sick Leave Benefits for information purposes. CITY or ST. CATHARINE Corporate Report Report from Office of the Chief Administrative Officer, Administration Date of Report: April 28, 2015 Date of Meeting: May 25, 2015 Report Number: CAO-136-2015 File:

More information

RETIREMENT INCOME CRISIS: INEVITABLE OR AVOIDABLE? THE ECONOMIC REALITY

RETIREMENT INCOME CRISIS: INEVITABLE OR AVOIDABLE? THE ECONOMIC REALITY RETIREMENT INCOME CRISIS: INEVITABLE OR AVOIDABLE? THE ECONOMIC REALITY A MESSAGE FROM HOOPP PRESIDENT & CEO, JIM KEOHANE March 17, 2014 The following White Paper, entitled Retirement Income Crisis: Inevitable

More information

Creating a Fairer Pension System in Canada: Ideas to Make Canada's Federal Government Employee Pension System Fair for Taxpayers and Employees

Creating a Fairer Pension System in Canada: Ideas to Make Canada's Federal Government Employee Pension System Fair for Taxpayers and Employees Pension Policy Creating a Fairer Pension System in Canada: Ideas to Make Canada's Federal Government Employee Pension System Fair for Taxpayers and Employees By William (Bill) Tufts and Lee Fairbanks KEY

More information

Canadian Labour Congress Background Information for Individual Responses

Canadian Labour Congress Background Information for Individual Responses 1 Canadian Labour Congress Background for Individual Responses Questions from the Ministry of Finance Ontario Consulting with Ontarians on Canada s Retirement Income System How much income do you think

More information

Words on Wealth. Welcome to the fall edition and the new look of Meridian s Words on Wealth! Meridian FALL 2014

Words on Wealth. Welcome to the fall edition and the new look of Meridian s Words on Wealth! Meridian FALL 2014 Meridian Words on Wealth FALL 2014 Welcome to the fall edition and the new look of Meridian s Words on Wealth! It seems people aren t thinking about risk these days as much as they used to and it s too

More information

Retirement Security. Public Policy Issue Statement

Retirement Security. Public Policy Issue Statement Retirement Security June 2006 Public Policy Issue Statement Background Retirement plans represent an important aspect of the total compensation package used by employers to recruit and retain employees.

More information

transition to 401(k) PLAnS

transition to 401(k) PLAnS transition to 401(k) PLAnS A TRAIN WRECK IN THE MAKING PArt i LoSS of retirement SEcuritY California Retired County Employees Association Retirement Security Committee March 2012 CRCEA; P.O. Box 706; Merced,

More information

PENSION INNOVATION FOR CANADIANS: THE TARGET BENEFIT PENSION PLAN

PENSION INNOVATION FOR CANADIANS: THE TARGET BENEFIT PENSION PLAN PENSION INNOVATION FOR CANADIANS: THE TARGET BENEFIT PENSION PLAN SUBMISSION TO THE DEPARTMENT OF FINANCE, CANADA, FROM THE CONGRESS OF UNION RETIREES OF CANADA, JUNE 23, 2014. The Congress of Union Retirees

More information

Exploding Public Sector Pensions Myths: A Briefing for Trade Union Members

Exploding Public Sector Pensions Myths: A Briefing for Trade Union Members Exploding Public Sector Pensions Myths: A Briefing for Trade Union Members Headlines about public sector pensions seem to have been appearing on a daily basis ever since the credit crunch started to bite.

More information

THE WAY TO BUILDING A BETTER ONTARIO 2016 Ontario Pre-Budget Submission

THE WAY TO BUILDING A BETTER ONTARIO 2016 Ontario Pre-Budget Submission THE WAY TO BUILDING A BETTER ONTARIO 2016 Ontario Pre-Budget Submission February 2016 Tel/Tél: 416.497.4110 Toll-free/Sans frais: 1.800.268.5763 Fax/Téléc: 416.496.6552 Who is Unifor Unifor is a new Canadian

More information

ENHANCING THE. Canada Pension Plan. canadianlabour.ca

ENHANCING THE. Canada Pension Plan. canadianlabour.ca ENHANCING THE Canada Pension Plan canadianlabour.ca What are we asking for? We are asking the federal government to double the Canada Pension Plan (CPP) retirement benefit for Canadians so that it replaces

More information

THE EMERGING RETIREMENT CRISIS

THE EMERGING RETIREMENT CRISIS THE EMERGING RETIREMENT CRISIS PART ONE Ontarians Rank Retirement Income Security as a Top Concern 1 // THE EMERGING RETIREMENT CRISIS: PART ONE Letter from Jim Keohane, HOOPP Dwindling pension coverage

More information

SUSTAINING PROSPERITY FOR FUTURE GENERATIONS NLEC POSITION ON 2013 PROVINCIAL BUDGET PRIORITIES

SUSTAINING PROSPERITY FOR FUTURE GENERATIONS NLEC POSITION ON 2013 PROVINCIAL BUDGET PRIORITIES SUSTAINING PROSPERITY FOR FUTURE GENERATIONS Approved by the NLEC Board of Directors Jan 16 th, 2013 1 SUSTAINING OUR PROSPERITY FOR FUTURE GENERATIONS INTRODUCTION The Newfoundland and Labrador Employers

More information

NCPERS Testimony for Briefing On Private Sector Pension/Retirement Plans

NCPERS Testimony for Briefing On Private Sector Pension/Retirement Plans NCPERS Testimony for Briefing On Private Sector Pension/Retirement Plans by Hank Kim, Esq. Executive Director and Counsel National Conference on Public Employee Retirement Systems (NCPERS) Before the Pensions

More information

Policy Brief June 2010

Policy Brief June 2010 Policy Brief June 2010 Pension Tension: Understanding Arizona s Public Employee Retirement Plans The Arizona Chamber Foundation (501(c)3) is a non-partisan, objective educational and research foundation.

More information

Arizona s Pension Challenges: The Need for an Affordable, Secure, and Sustainable Retirement Plan

Arizona s Pension Challenges: The Need for an Affordable, Secure, and Sustainable Retirement Plan NOVEMBER 2012 ARIZONA Arizona s Pension Challenges: The Need for an Affordable, Secure, and Sustainable Retirement Plan The funding level of Arizona s public employee retirement systems has declined every

More information

Company Pension Plans in Canada

Company Pension Plans in Canada Company Pension Plans in Canada This article provides an introduction to company pension plans as well as a discussion of several issues currently facing company pension plans in Canada. Company pension

More information

Public Consultation Package

Public Consultation Package Public Consultation Package Request for Comments Retirement Income Adequacy in Canada Yukon Finance March 2010 Whitehorse, Yukon March 2010 Message from the Premier and Minister of Finance The Yukon Government

More information

The 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education

The 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education POLICY BRIEF Visit us at: www.tiaa-crefinstitute.org. September 2004 The 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education The 2004 Social

More information

Canadian Retirement System

Canadian Retirement System Canadian Retirement System Instructor: Karen Chen Actuary, PBI Actuarial Consultants John 55 years old Lived in Canada his whole life Worked since age 25 Current employer offers a pension plan With current

More information

Retirement Income Coalition

Retirement Income Coalition 2005 Pre-Budget Submission STRENGTHENING THE VOLUNTARY PILLAR OF CANADA'S RETIREMENT INCOME SYSTEM SEPTEMBER 2004 TABLE OF CONTENTS Page Introduction 1 Unfinished Business 2 Middle Income Canadians Affected

More information

Policy Focus. The Need for Social Security Reform. Republicans and Democrats increasingly acknowledge that reforming. what you need to know

Policy Focus. The Need for Social Security Reform. Republicans and Democrats increasingly acknowledge that reforming. what you need to know Policy Focus The Need for Social Security Reform Recipes for Rational Government from the Independent Women s Forum Carrie Lukas, Managing Director, Independent Women s Forum August 2011 Volume 1, Number

More information

ONTARIO RETIREMENT PENSION PLAN

ONTARIO RETIREMENT PENSION PLAN THE ONTARIO RETIREMENT PENSION PLAN DISCUSSING A MADE-IN-ONTARIO SOLUTION ASSOCIATE MINISTER S MESSAGE Ask a child what they want to be when they grow up and they ll tell you. A doctor. An astronaut.

More information

Ontario Retirement Pension Plan

Ontario Retirement Pension Plan in partnership with: Ontario Retirement Pension Plan The impact on Ontario s manufacturers and their 750,000 employees Canadian Manufacturers & Exporters September 2015 Table of Contents Executive Summary

More information

How Can You Reduce Your Taxes?

How Can You Reduce Your Taxes? RON GRAHAM AND ASSOCIATES LTD. 10585 111 Street NW, Edmonton, Alberta, T5M 0L7 Telephone (780) 429-6775 Facsimile (780) 424-0004 Email rgraham@rgafinancial.com How Can You Reduce Your Taxes? Tax Brackets.

More information

RETIREMENT ACCOUNTS. Alternative Retirement Financial Plans and Their Features

RETIREMENT ACCOUNTS. Alternative Retirement Financial Plans and Their Features RETIREMENT ACCOUNTS The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial tax advantages that will typically have the

More information

Pension Series. Research

Pension Series. Research CFIB Research Pension Series REPORT 1: Canada s Hidden Unfunded Public Sector Pension Liabilities 6 8 9 4 9 1 4 1 8 6 5 5 Canada s Hidden Unfunded Public Sector Pension Liabilities Ted Mallett, Vice-President

More information

4Needs your WHAT S AFTER? ELIMINATE DEBT THE FEWER DEBTS, THE BETTER! Wills and Trusts; Reviewing These Are a Must

4Needs your WHAT S AFTER? ELIMINATE DEBT THE FEWER DEBTS, THE BETTER! Wills and Trusts; Reviewing These Are a Must YOUR SOURCE FOR RETIREMENT PLANNING AND POSSIBILITIES e > N xt WHAT S AFTER? But first, some things to think about before 4Needs your retirement income should meet ELIMINATE DEBT THE FEWER DEBTS, THE BETTER!

More information

How Washington Rates on Retirement Security and Defined Benefit Plan Issues

How Washington Rates on Retirement Security and Defined Benefit Plan Issues How Washington Rates on Retirement Security and Defined Benefit Plan Issues National Institute on Retirement Security Diane Oakley, Executive Director April 8, 2014 www.nirsonline.org About NIRS Nonprofit,

More information

Ontario Retirement Pension Plan Key Design Questions

Ontario Retirement Pension Plan Key Design Questions Ontario Retirement Pension Plan Key Design Questions Submission to the Associate Minister of Finance Prepared by Canadian Bankers Association February 13, 2015 1 EXPERTISE CANADA BANKS ON LA RÉFÉRENCE

More information

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement GUIDE TO RETIREMENT PLANNING Making the most of the new pension rules to enjoy freedom and choice in your retirement FINANCIAL GUIDE WELCOME Making the most of the new pension rules to enjoy freedom and

More information

Module 5 - Saving HANDOUT 5-7

Module 5 - Saving HANDOUT 5-7 HANDOUT 5-7 Savings Tools (detailed) 5 Contents High interest savings account This is a type of deposit account. The bank pays you interest. The rate changes with the prime rate set by the bank. This is

More information

account statement a record of transactions in an account at a financial institution, usually provided each month

account statement a record of transactions in an account at a financial institution, usually provided each month GLOSSARY GLOSSARY Following are definitions for key words as they are used in the financial life skills resource. They may have different or additional meanings in other contexts. A account an arrangement

More information

Capital Gains Tax Credit Valuing Wealth Over Work in Montana March 2013

Capital Gains Tax Credit Valuing Wealth Over Work in Montana March 2013 Capital Gains Tax Credit Valuing Wealth Over Work in Montana March 2013 In 2003, the Montana Legislature passed a capital gains tax credit that benefits a very narrow portion of our population at the great

More information

Submission to the Government of Canada s Public Consultation Process on the Retirement Income System

Submission to the Government of Canada s Public Consultation Process on the Retirement Income System Submission to the Government of Canada s Public Consultation Process on the Retirement Income System Professional Institute of the Public Service of Canada May 2010 Aussi disponible en français The Professional

More information

Pension Sustainability

Pension Sustainability Pension Sustainability Making public sector pensions more secure and affordable gov.pe.ca/pensionplans Minister s message Prince Edward Island s two large public sector pension plans, the Civil Service

More information

The Facts of Life and Annuities

The Facts of Life and Annuities 2 The Facts of Life and Annuities Introduction... 4 7 Key Facts... 5 Life Insurance Ownership Is Widespread, but Inadequate... 6 Most Individual Life Insurance Policies Are Permanent... 8 Why Life Insurance

More information

THE TAXATION OF RETIREMENT SAVINGS IN CANADA

THE TAXATION OF RETIREMENT SAVINGS IN CANADA THE TAXATION OF RETIREMENT SAVINGS IN CANADA Laurence E. Coward, Canada 1 INTRODUCTION Retirement income for the elderly is provided through a combination of state pensions, employment pension plans and

More information

RETIREMENT ACCOUNTS (c) Gary R. Evans, 2006-2011, September 24, 2011. Alternative Retirement Financial Plans and Their Features

RETIREMENT ACCOUNTS (c) Gary R. Evans, 2006-2011, September 24, 2011. Alternative Retirement Financial Plans and Their Features RETIREMENT ACCOUNTS (c) Gary R. Evans, 2006-2011, September 24, 2011. The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial

More information

A Conversation With a Canadian Benefits Attorney

A Conversation With a Canadian Benefits Attorney A Conversation With a Canadian Benefits Attorney 28 th Annual National CLE Conference Employee Benefits January 5, 2011 (5:30 6:30 p.m.) Elizabeth M. Brown Hicks Morley Hamilton Stewart Storie LLP Overview

More information

Responsible leveraging. A wealth creation strategy

Responsible leveraging. A wealth creation strategy Responsible leveraging A wealth creation strategy What is leveraging? Borrowing to invest is a wealth-building strategy that has been used for thousands of years. The financial term for borrowing to invest

More information

Introducing. Tax-Free Savings Accounts

Introducing. Tax-Free Savings Accounts Introducing Tax-Free Savings Accounts Tax-Free Savings Accounts A new way to save Tax-free savings accounts were introduced by the federal government in the 2008 budget as an incentive for Canadians to

More information

Alternative Retirement Financial Plans and Their Features

Alternative Retirement Financial Plans and Their Features RETIREMENT ACCOUNTS Gary R. Evans, 2006-2013, November 20, 2013. The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial

More information

99 Metcalfe Street, Suite 1202 99, rue Metcalfe, bureau 1202 Ottawa, Ontario K1P 6L7 Ottawa (Ontario) K1P 6L7. June 23, 2014

99 Metcalfe Street, Suite 1202 99, rue Metcalfe, bureau 1202 Ottawa, Ontario K1P 6L7 Ottawa (Ontario) K1P 6L7. June 23, 2014 99 Metcalfe Street, Suite 1202 99, rue Metcalfe, bureau 1202 Ottawa, Ontario K1P 6L7 Ottawa (Ontario) K1P 6L7 June 23, 2014 Minister Kevin Sorenson Minister of State (Finance) Department of Finance Canada

More information

The Quebec Voluntary Retirement Savings Plan (VRSP) An overview of the newly announced workplace retirement savings plan

The Quebec Voluntary Retirement Savings Plan (VRSP) An overview of the newly announced workplace retirement savings plan The Quebec Voluntary Retirement Savings Plan (VRSP) An overview of the newly announced workplace retirement savings plan Use this summary of Quebec s recently-introduced Voluntary Retirement Savings Plan

More information

Retirement Compensation Arrangement

Retirement Compensation Arrangement tax efficient retirement planning tool business GUIDELINES Retirement Compensation Arrangement Supplement Retirement Income while providing Tax Deductible contributions RRSPs and Pension Plans provide

More information

pensions backgrounder #4

pensions backgrounder #4 pensions backgrounder #4 Private Retirement Savings Part 4 in a Series The full series of pension backgrounders are contained in the National Union s Pensions Manual, Fourth Edition available from the

More information

The shock, he says, was discovering at age 49 that nearly a third of the funds required to back his pension were not there.

The shock, he says, was discovering at age 49 that nearly a third of the funds required to back his pension were not there. What retirement? SIMON WILSON FOR THE TORONTO STAR Mike Bibeau, pictured in 2005 outside the now-demolished south plant of Slater Steel s Atlas Specialty Steel in Welland. The reduced pension he received

More information

TAX-FREE SAVINGS ACCOUNT (TFSA)

TAX-FREE SAVINGS ACCOUNT (TFSA) TAX-FREE SAVINGS ACCOUNT () A practical addition to your client s savings portfolio Advisor s document Investment THE TAX-FREE SAVINGS ACCOUNT () The Tax-Free Savings Account () is probably the single

More information

The role of the federal government in reducing poverty in Canada: the vision of New Brunswick

The role of the federal government in reducing poverty in Canada: the vision of New Brunswick The New Brunswick Common Front for Social Justice Inc. (CFSJ) Represented by Auréa Cormier CFSJ Provincial Councilor The role of the federal government in reducing poverty in Canada: the vision of New

More information

> The Role of Insurance in Wealth Planning

> The Role of Insurance in Wealth Planning > The Role of Insurance in Wealth Planning Executive retirement solutions A S S A N T E E S T A T E A N D I N S U R A N C E S E R V I C E S I N C. Executive retirement solutions Everyone wants enough retirement

More information

Tax Rules for Pooled Registered Pension Plans (PRPPs) Submission to the. Department of Finance Canada

Tax Rules for Pooled Registered Pension Plans (PRPPs) Submission to the. Department of Finance Canada Tax Rules for Pooled Registered Pension Plans (PRPPs) Submission to the Department of Finance Canada Ottawa, Ontario August 2011 Introduction The Canadian Chamber appreciates the opportunity to submit

More information

An Analysis of Eliminating the Cap on Earnings Subject to the Social Security Tax & Related Issues

An Analysis of Eliminating the Cap on Earnings Subject to the Social Security Tax & Related Issues Citizens for Tax Justice! 202-299-1066! www.ctj.org November 30, 2006 (6 pp.) An Analysis of Eliminating the Cap on Earnings Subject to the Social Security Tax & Related Issues Recently, there has been

More information

The Truth about the State Employees Retirement System of Illinois

The Truth about the State Employees Retirement System of Illinois The Truth about the State Employees Retirement System of Illinois The State Employees Retirement System (SERS) began in 1944 as a core benefit for state and local employers to use in attracting and retaining

More information

A super waste of money

A super waste of money A super waste of money Redesigning super tax concessions April 2015 ISSN 1836-9014 Matt Grudnoff Policy Brief About TAI The Australia Institute is an independent public policy think tank based in Canberra.

More information

Labour-Sponsored Investment Funds in Canada

Labour-Sponsored Investment Funds in Canada Labour-Sponsored Investment Funds in Canada Sherman Kreiner Chief Executive Officer Crocus Fund with assistance by Kenneth Delaney President and Chief Executive Officer First Ontario Fund Labour sponsored

More information

Budget 1998. Building Canada for the 21 st Century. Tax Relief for Canadians

Budget 1998. Building Canada for the 21 st Century. Tax Relief for Canadians Budget 1998 Building Canada for the 21 st Century Tax Relief for Canadians February 1998 Let me now turn to the question of taxation and let me begin by reaffirming our goal. It is to reduce taxes. It

More information

Ontario Retirement Pension Plan Proposal MEPCO DISCUSSION PAPER

Ontario Retirement Pension Plan Proposal MEPCO DISCUSSION PAPER Ontario Retirement Pension Plan Proposal MEPCO DISCUSSION PAPER JUNE 17, 2015 1 Ontario s Registered Pension Plan Proposal Background: In the 2014 Provincial Budget, the Ontario Government announced that

More information

TO HELP YOU MAKE THE MOST OF YOUR RETIREMENT DAYS

TO HELP YOU MAKE THE MOST OF YOUR RETIREMENT DAYS RETIREMENT GUIDE TO HELP YOU MAKE THE MOST OF YOUR RETIREMENT DAYS Whether it s a long-term project or a dream that s about to come true, you likely have no shortage of ideas to fill up this exciting period

More information

BENEFITS & COMPENSATION INTERNATIONAL TOTAL REMUNERATION AND PENSION INVESTMENT

BENEFITS & COMPENSATION INTERNATIONAL TOTAL REMUNERATION AND PENSION INVESTMENT BENEFITS & COMPENSATION INTERNATIONAL TOTAL REMUNERATION AND PENSION INVESTMENT Can the Retiree Health Benefits Situation in Canada be Saved? Ellen Whelan Ellen Whelan is a consultant in the Group Benefits

More information

The self-employed and pensions

The self-employed and pensions BRIEFING The self-employed and pensions Conor D Arcy May 2015 resolutionfoundation.org info@resolutionfoundation.org +44 (0)203 372 2960 The self-employed and pensions 2 The UK s self-employed populace

More information

Planning for Retirement: Are Canadians Saving Enough?

Planning for Retirement: Are Canadians Saving Enough? June 2007 Planning for Retirement: Are Canadians Saving Enough? Document 207055 This study was carried out by the Department of Statistics and Actuarial Science at the University of Waterloo, under the

More information

Paired Plans. When we run a paired plan we are able to maximize the benefits and minimize the shortcomings of each type of plan.

Paired Plans. When we run a paired plan we are able to maximize the benefits and minimize the shortcomings of each type of plan. T raditionally, companies have had the option of adopting either a Defined Contribution Plan, such as a 401(k) Profit Sharing Plan, or a Defined Benefit Plan. Each of these types of plans has advantages

More information

IPPR speech Pension reform in the public services

IPPR speech Pension reform in the public services IPPR speech Pension reform in the public services 23 June 2011 Good morning everybody. Can I start by thanking the IPPR for giving me this opportunity to say a few words about pension reform in the public

More information

Advisor Guide. The BMO. Insurance Insured Retirement Plan

Advisor Guide. The BMO. Insurance Insured Retirement Plan Advisor Guide The BMO Insurance Insured Retirement Plan Table of Contents Introduction to The BMO Insurance Insured Retirement Plan 2 The Opportunity 3 The Solution 4 The BMO Insurance Insured Retirement

More information

En h a n c ed Ea r n i n g s a n d Ta x Revenues from a

En h a n c ed Ea r n i n g s a n d Ta x Revenues from a En h a n c ed Ea r n i n g s a n d Ta x Revenues from a University of Wisconsin-Whitewater Degree: A Synthetic An a ly s i s by Russ Kashian Fiscal and Economic Research Center University of Wisconsin

More information

Comments on Securing Our Retirement Future: Consulting with Ontarians on Canada s Retirement Income System

Comments on Securing Our Retirement Future: Consulting with Ontarians on Canada s Retirement Income System November 29, 2010 Ministry of Finance Retirement Income Security Submission c/o Communications & Corporate Affairs Branch 3rd Floor, Frost Building North 95 Grosvenor Street Toronto, ON M7A 1Z1 Re: Comments

More information

REPORT ON THE TAX TREATMENT OF LAWYERS' INCOME ON THEIR APPOINTMENT TO THE BENCH. November 2000

REPORT ON THE TAX TREATMENT OF LAWYERS' INCOME ON THEIR APPOINTMENT TO THE BENCH. November 2000 1 INTRODUCTION REPORT ON THE TAX TREATMENT OF LAWYERS' INCOME ON THEIR APPOINTMENT TO THE BENCH Business and Publications Division Income Tax Rulings Directorate Policy and Legislation Branch November

More information

Is A Roth 401(k) Right For You?

Is A Roth 401(k) Right For You? Is A Roth 401(k) Right For You? A Decision Guide For Plan Participants Standard Retirement Services, Inc. The Roth 401(k) And Your Retirement Plan Should I Or Shouldn t I? We probably ask ourselves some

More information

The easy way to save for your retirement

The easy way to save for your retirement The easy way to save for your retirement If you want to live comfortably during your retirement, you really can t afford to wait to begin saving for that goal. And now that your employer is offering the

More information

Sample retirement plan prepared with. The Canadian Retirement Planner s Software. For information visit http://www.gobeil.ca/

Sample retirement plan prepared with. The Canadian Retirement Planner s Software. For information visit http://www.gobeil.ca/ RETIREMENT PLAN KAREN AND BILL SWIRE PROVINCE OF ONTARIO AS AT JANUARY 1, 2012 PREPARED BY DAVID GOBEIL, CA, CFP NOVEMBER 4, 2011 VERSION DRAFT Sample retirement plan prepared with The Canadian Retirement

More information

Highlights of the 2012 Ontario budget. The Intent According to the Government:

Highlights of the 2012 Ontario budget. The Intent According to the Government: Examples of questions to consider: Highlights of the 2012 Ontario budget How will this budget impact on us locally? How will public sector workers such as day care workers continue to work with reduced

More information

PROPOSAL FOR A PROVINCIAL TAX CREDIT TO SUPPORT INVESTMENT IN ONTARIO'S SOCIAL ECONOMY - REGISTRATION OF INVESTMENTS

PROPOSAL FOR A PROVINCIAL TAX CREDIT TO SUPPORT INVESTMENT IN ONTARIO'S SOCIAL ECONOMY - REGISTRATION OF INVESTMENTS PROPOSAL FOR A PROVINCIAL TAX CREDIT TO SUPPORT INVESTMENT IN ONTARIO'S SOCIAL ECONOMY - REGISTRATION OF INVESTMENTS A BRIEF TO THE PARTNERSHIP PROJECT FROM THE ONTARIO SOCIAL ECONOMY ROUNDTABLE (OSER)

More information

This strategy gives a person the ability to take advantage of the tax-sheltering ability of a life insurance policy.

This strategy gives a person the ability to take advantage of the tax-sheltering ability of a life insurance policy. Insuring the Future In this Newsletter: Supplementing Retirement Income Who should be looking at this strategy? The Registered Savings Problem John Jordan, CFP CERTIFIED FINANCIAL PLANNER Phone: (519)

More information

2016 Federal Budget. Submission. on the. to the. House of Commons Standing Committee on Finance. by the

2016 Federal Budget. Submission. on the. to the. House of Commons Standing Committee on Finance. by the Submission on the 2016 Federal Budget to the House of Commons Standing Committee on Finance by the Canadian Life and Health Insurance Association Canadian Life and Health Insurance Association 79 Wellington

More information

TIME FOR ACTION. CPP Expansion: A critical part of the solution. Prepared by the Pensions Committee FEI Canada Policy Forum May 1, 2014

TIME FOR ACTION. CPP Expansion: A critical part of the solution. Prepared by the Pensions Committee FEI Canada Policy Forum May 1, 2014 TIME FOR ACTION CPP Expansion: A critical part of the solution Prepared by the Pensions Committee FEI Canada Policy Forum May 1, 2014 Debate has intensified on how best to help Canadians plan for retirement

More information

ICI RESEARCH PERSPECTIVE

ICI RESEARCH PERSPECTIVE ICI RESEARCH PERSPECTIVE 0 H STREET, NW, SUITE 00 WASHINGTON, DC 000 0-6-800 WWW.ICI.ORG OCTOBER 0 VOL. 0, NO. 7 WHAT S INSIDE Introduction Decline in the Share of Workers Covered by Private-Sector DB

More information

BLUE PAPER. Roth 401(k): Creating a Tax-Advantaged Strategy for Retirement IN BRIEF. January 2016

BLUE PAPER. Roth 401(k): Creating a Tax-Advantaged Strategy for Retirement IN BRIEF. January 2016 BLUE PAPER Roth 401(k): Creating a Tax-Advantaged Strategy for Retirement Roth 401(k) Helps Investors Take Diversification * to the Next Level. IN BRIEF January 2016 Just as a well-diversified portfolio

More information

The Individual Pension Plan. An opportunity to have your cake and eat it too!

The Individual Pension Plan. An opportunity to have your cake and eat it too! Special Report An introduction to: The Individual Pension Plan An opportunity to have your cake and eat it too! Gerard Hass, CA, CFP, CFA Portfolio Manager Raymond James Ltd. 1 What is an Individual Pension

More information

Pension Basics. Presented by the Pension & Benefits Office

Pension Basics. Presented by the Pension & Benefits Office Pension Basics Presented by the Pension & Benefits Office Potential Sources of Income at Retirement Government sponsored pension such as: Canada Pension Plan (CPP) Old Age Security (OAS) Individual Savings

More information

Connecticut State Employee Collective Bargaining and Retirement Benefits

Connecticut State Employee Collective Bargaining and Retirement Benefits Background Connecticut State Employee Collective Bargaining and Retirement Benefits State employees through their bargaining units have had the authority under state law to collectively bargain on wages,

More information

Tax Planning Opportunities Involving Professional Corporations

Tax Planning Opportunities Involving Professional Corporations Tax Planning Opportunities Involving Professional Corporations A Discussion Paper Prepared by: Alan Koop, CA Prepared for: The Saskatchewan Provincial Court Judges Association Table of Contents Executive

More information

Group Savings and Retirement Programs. A Guide for SME Owners

Group Savings and Retirement Programs. A Guide for SME Owners Group Savings and Retirement Programs A Guide for SME Owners Be an employer of choice Which perk do you think employees working for small and medium-sized businesses would choose first a pay raise, extra

More information

We all have dreams about retirement. Some day you expect to retire, and you

We all have dreams about retirement. Some day you expect to retire, and you Sustainability, Cost-Effectiveness, Fairness and Value A Primer on Modern Pension Plan Design Dr. Bruce Kennedy, Executive Director BC Public Service Pension Plan May 2013 We all have dreams about retirement.

More information

The GPO predominantly penalizes women educators in California, while the WEP penalizes many individuals who switch careers into public service.

The GPO predominantly penalizes women educators in California, while the WEP penalizes many individuals who switch careers into public service. Chair Pomeroy and Members, Social Security has met the social insurance promise to ensure workers will not have to live in old age poverty. This promise needs to be guaranteed for current and future workers.

More information

Important Changes to Your Lutheran Church Canada Pension Plan

Important Changes to Your Lutheran Church Canada Pension Plan Background Important Changes to Your Lutheran Church Canada Pension Plan This newsletter describes important changes to the Pension Plan. Please take the time to read it thoroughly. For the past 18 months,

More information

INSURANCE CORPORATION OF BRITISH COLUMBIA EXECUTIVE COMPENSATION DISCLOSURE STATEMENT

INSURANCE CORPORATION OF BRITISH COLUMBIA EXECUTIVE COMPENSATION DISCLOSURE STATEMENT INSURANCE CORPORATION OF BRITISH COLUMBIA EXECUTIVE COMPENSATION DISCLOSURE STATEMENT In keeping with the guidelines provided by the Public Sector Employer s Council (PSEC), the following table outlines

More information

Restore Tax Fairness for Social Security s Solvency. Christian Weller, Ph.D.

Restore Tax Fairness for Social Security s Solvency. Christian Weller, Ph.D. Restore Tax Fairness for Social Security s Solvency Christian Weller, Ph.D. Restore Tax Fairness for Social Security s Solvency Christian E. Weller, Ph.D. Center for American Progress May 2005 Introduction

More information

Workers compensation finances crisis or smokescreen?

Workers compensation finances crisis or smokescreen? Workers compensation finances crisis or smokescreen? Over the past 20 years, the unfunded liability has been offered as the reason for eliminating full cost-of-living adjustment of injured worker benefits

More information

American Bankers Association. Sample Glossary of Collective Investment Fund Terms for Disclosures to Retirement Plan Participants

American Bankers Association. Sample Glossary of Collective Investment Fund Terms for Disclosures to Retirement Plan Participants American Bankers Association Sample Glossary of Collective Investment Fund Terms for Disclosures to Retirement Plan Participants January 5, 2012 2 PART 1 Frequently Asked Questions (FAQs) About Collective

More information

universal life UNIVERSAL LIFE INVESTOR PROFILER QUESTIONNAIRE

universal life UNIVERSAL LIFE INVESTOR PROFILER QUESTIONNAIRE universal life UNIVERSAL LIFE INVEST PROFILER QUESTIONNAIRE UNIVERSAL LIFE INVEST PROFILER QUESTIONNAIRE Universal life combines the benefits of cost-effective life insurance protection with tax-advantaged

More information

Life insurance. Shedding light on. a practical guide to helping you achieve a lifetime of financial security

Life insurance. Shedding light on. a practical guide to helping you achieve a lifetime of financial security Shedding light on Life insurance a practical guide to helping you achieve a lifetime of financial security Learn more about: Safeguarding your loved ones Protecting your future Ensuring your dreams live

More information

Preparing for Retirement. A Guide for Employees. Human Resources

Preparing for Retirement. A Guide for Employees. Human Resources Preparing for Retirement A Guide for Employees 010 Human Resources Contents Introduction... 3 Canada Pension Plan Retirement Benefits... 4 Old Age Security... 6 Employment Insurance Benefits at Retirement...

More information

The Commuted Value Option at GM

The Commuted Value Option at GM The Commuted Value Option at GM In the September 2012 Detroit 3 negotiations, the CAW agreed to the Ford and GM request on commuted value (CV) options. After December 31, 2012, CAW members retiring with

More information

FY10 Illinois Pension Reform Proposals SURS Implications Fact Sheet 5/22/09

FY10 Illinois Pension Reform Proposals SURS Implications Fact Sheet 5/22/09 FY10 Illinois Pension Reform Proposals SURS Implications Fact Sheet 5/22/09 Pension reform measures covering all of the State employee retirement systems were initially proposed in the Governor s Fiscal

More information

Strategies to Manage the Ever Bigger Bite of Taxes

Strategies to Manage the Ever Bigger Bite of Taxes Tax Impact Series: Avoid Manage Defer AMG Funds Research and Analysis Strategies to Manage the Ever Bigger Bite of Taxes In this world, nothing can be said to be certain except death and taxes. Benjamin

More information

Clients want to know: How can I keep more of my retirement income?

Clients want to know: How can I keep more of my retirement income? Clients want to know: How can I keep more of my retirement income? After reading this, you should understand: The strategies that enable pensioners to pay less tax Regardless of the source of retirement

More information