June 29, 2013 – News Today

Don Cayo: Federal pension shortfall much worse than Ottawa admits

Recent reforms notwithstanding, the generous pension plans for federal employees — not to mention the one for MPs — are in much worse shape than Ottawa admits, says a new study from the C.D. Howe Institute. The same kind of collapse of investment returns that set back the retirement dreams of countless Canadians in the private sector has also hit the government plans, the analysis notes. But there are two key differences. One is that the feds continue to massively understate the unfunded liability of meeting lavish retirement promises to public servants, military personnel and RCMP, and, of course, MPs. The other is that, no matter how badly the total is underestimated, taxpayers — “largely the same people who are now postponing and scaling back their own retirement expectations” — will be on the hook for the difference. Read More