Most Canadians save over their working career into a plan and what ever is in the plan a retirement becomes their retirement income. A public sector pension works on a completely different concept. It guarantees a certain level of income in retirement.
Definition
The Oxford dictionary describes the difference in the two plans well.
1) a regular payment made by a government to people above a specified age... or to such a person's surviving dependents - Public Sector pensions
2) a regular payment from a fund to which the recipient has contributed - private sector pensions
As a result of the different concepts pension apartheid is created. The public sector pension is designed to provide pensions based on 70% of income at retirement. A private sector pensions will payout based on what is in the fund at retirement.
The CD Howe report A Pension in Every Pot shows the impact of the two different ways of calculating "pensions".
Two Pensions Two Results
- A typical private sector workers retires with a fund valued at $ 255,000
- A typical public sector worker retires with a fund valued in excess of $ 1,200,000
Your definition is typically fraudulent, bill.
ReplyDeletehe Oxford Dictionary makes no such differential between public and private pensions, plus the statement is totally false. Public sector employees pay into their pension plans exactly the same way as private sector employees do.
This is typically false statements from Mr Tufts, whose book if full of such falsehoods.