Pension Reform

[TimG]

The fair share of business in regard to personal pensions is zero, unless otherwise contracted.

Actually, private pension plans have turned into a mess because of this nonsenscial idea that employeers have a responsibility for employee pensions. I say all hidden contributions by employers be made illegal and 100% of pension contributions must come out the employee's pay where the base rate is raised to include the currenly hidden pension contributions. Pension funds should be managed by a 3rd party and employers have no responsibility beyond paying the agreed contributions on each paycheck. They also would not be allowed to touch surpluses.

[dre]

We need one for those who are too lazy or too stupid to manage their own. What we should have is an option to self direct their pensions.

The problem with that is the public is on the hook for the millions that will misdirect their own pensions ANYWAYS.

People with more money can already expand on or augment their pension if they choose to.

[eyeball]

I personally think we need to better educate the people of this country about Finances. There should be a class on it every year through High school to pound financial responsibility into people’s heads.

Someone definitely needs some sense pounded into their heads.

In the short time the financial crisis we're in has occurred the income gap has widened to such an extent that some 25% of all the income in our economy now flows into the hands of 1% of all the people. It's no wonder there's so little money left in the economy for investing in pensions when so much is required to sustain the ultra-rich.

Excuse me but, us ignorant peons are supposed to swallow the government's suggestion that its us who need an education on how to prevent the irresponsible mismanagement of our finances and opportunities? Good luck with that.

Whatever moral sense it is that people are missing when it comes to managing their financial responsibility is guaranteed to be sucked into the maelstrom of cynicism and incredulity that the income gap represents.

I think over half the issue is people being ignorant to what they need to do to retire well.

I think more than half the issue is people being greedy but far be it from me to criticize the cutting edge economic wisdom that says greed is not only good but downright vital to our well being.

[Michael Hardner]

In the short time the financial crisis we're in has occurred the income gap has widened to such an extent that some 25% of all the income in our economy now flows into the hands of 1% of all the people. It's no wonder there's so little money left in the economy for investing in pensions when so much is required to sustain the ultra-rich.

Hey eyeball - an update on my 'electronic money' idea...

What if money had a 'best before' date ? The date would get updated when the money was exchanged between individuals, or used to purchase services or goods, if some financial vehicles(like stock) was bought with it. The peons already spend their money as fast as it comes in, but it would discourage people from hoarding.

Just a thought, there. I'm no economist...

[TimG]

The peons already spend their money as fast as it comes in, but it would discourage people from hoarding.

Never underestimate the law of unintended consequences or the ability of people to game the system.

More importantly - money is almost never horded (penny jars are the exception). Every cent that sits in a bank account or is invested in a stock is being put work providing capital to those that need it.

Edited December 22, 2010 by TimG

[Wilber]

Actually, private pension plans have turned into a mess because of this nonsenscial idea that employeers have a responsibility for employee pensions. I say all hidden contributions by employers be made illegal and 100% of pension contributions must come out the employee's pay where the base rate is raised to include the currenly hidden pension contributions. Pension funds should be managed by a 3rd party and employers have no responsibility beyond paying the agreed contributions on each paycheck. They also would not be allowed to touch surpluses.

Actually, for the most part that is how they do work and that is part of the problem. Company pensions are negotiated. Pensions are bargained for something else. In effect, wages deferred. When you hear that a company plan is "fully funded" or 90% funded that means it is being fully or 90% funded by employee contributions. Companies are only required to make up any shortfall due to market conditions. Company pensions are managed by a third party and companies or unions are not able to touch surplusses but government regulates how much a plan can be in surplus because they don't like the tax revenue being defered. Which is also a problem because the maximum allowed surplus is often not enough to make up for lower returns when markets to down. Comapanies are not allowed to make contributions that would result in a plan being in more than 15% in excess of the amount required to meet its existing obligations so when the market drops 30%, guess what happens to a fully funded plan. Instead of building the plan when times are good to compensate for when times are bad, the law not only allows them not to, it makes it illegal.

When the auto companies and auto workers negotiated a contract that made the company completely responsible for the pension plan, they did so at their own peril. Most company pension plans rely on employee contributions for all or most of the benefits paid.

[Topaz]

One advise I would give all working people that do have a company pension is, take the time to review that pension plan BEFORE you retire. There are some plans out there that benefits the company if you get an increase in CPP. In other words, you don't get the increase the company deducts it from the company pension. Having said that , it would be better to leave the CPP alone and the government to increase OAS or GIS. This way low-income earners would benefit, who may not have a pension. I don't think working for Walmart, Timmy's or others like them, offer pensions.

[M.Dancer]

I don't think working for Walmart, Timmy's or others like them, offer pensions.

Walmart has a pension plan. http://walmartstores.com/pressroom/news/6428.aspx

Tim Horton's has one too. http://www.timhortons.com/ca/en/join/dist-trans-empl.html

See, now you have no excuse to go get a job

[msj]

See, now you have no excuse to go get a job

:lol: :lol:

[Wilber]

Walmart has a pension plan. http://walmartstores.com/pressroom/news/6428.aspx

Tim Horton's has one too. http://www.timhortons.com/ca/en/join/dist-trans-empl.html

See, now you have no excuse to go get a job

They offer defined contribution plans which work like an RRSP which allows company contributions up to a certain limit. Their benefits are determined by market performance and are not fixed like a defined benefit plan. Far better than nothing however and probably the way most plans will be structured in the future unless you are a civil servant. The only real route to a secure pension plan.