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Private Sector Model For Public

Ontario's government employee pension plans must follow the private sector's lead in becoming sustainable for both employees and taxpayers alike, says Tim Hudak, Ontario PC leader. "Governments and union leaders too often make promises about benefits way down the road knowing they have no plan to pay for them,” Hudak says. “In contrast, the private sector has had to adapt to today’s fiscal realities as they’ve struggled with the rising cost of doing business.” Defined Benefit pension plans worked when the province had a small number of retirees and a large number of workers, he says. "Those days are gone and now the pyramid is upside down. We can either deal with the problem head-on, or we can duck our heads in the sand." The Ontario PC discussion paper, ‘Paths to Prosperity: Sustainable Retirement Security,’ proposes switching to Defined Contribution pension plans for government employees to avoid costly shortfalls.

Courtesy of Benefits and Pensions Monitor website News Alerts

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