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(Jan. 28, 2014) In a letter to the editor posted online in the Regina Leader-Post, Tom Graham of Regina notes the irony of calls to reform public sector pension plans, just as those same plans are showing 14 per cent investment returns, pushing them towards fully funded status.
The past year, writes Graham, has been one of dramatic turnaround for defined benefit plans, with more of the same likely to come. Opponents fail “to acknowledge that public-sector pension plans are deferred wages negotiated between unions and employers,” he writes, and that workers contribute into their plans “in lieu of higher increases to wages or other benefits.”
He continues that there is ample evidence the DB plans are a more efficient and effective way of accumulation retirement income than other options, such as RRSPs.
“A report on B.C.’s pensions by the Conference Board of Canada noted that not only do people save more for retirement through a defined-benefit plan, but about 70 per cent of these additional savings are invested in the Canadian economy – a positive impact on economic growth,” he writes in The Leader-Post.
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ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans.

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