Pensions are under attack globally as evidenced by the strike at more than 60 UK universities, writes Stuart J. Murray, a professor at Carlton University which is currently experiencing a strike of its own.
Staff at Carlton are walking the picket line carrying signs that say ‘Hands off my Pension.’ A wider trend of replacing DB pensions with DC schemes “may appear innocent, but it is not so,” he writes in the Ottawa Citizen. DC schemes shift risk to the individual saver, “where pension payments are not defined and may fluctuate in accordance with Canada’s fiscal and macroeconomic constraints over the short-term.”
The federal government’s Bill-27 is a case in point, continues Murray. If adopted the legislation would allow federally regulated industries to move their DB plans to target benefit schemes, and is opposed by groups including the Canadian Labour Congress.
“This has already happened in the province of New Brunswick. Now, imagine replacing the Canada Pension Plan and Old Age Security with privately administered individual retirement accounts. Most of us would feel very threatened by this idea. A pension plan is stronger and better when it minimizes risk and is held in common over the long-term,” he writes.
More: What kind of future are we working for?

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 – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapension

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