Finance ministers meet to discuss pension plans
Posted Dec 20, 2010 8:23 am.
This article is more than 5 years old.
There will likely be a heated debate in Kananaskis Monday, as Canada’s finance ministers meet to discuss pension reform.
However, Alberta’s Ted Morton may have to go it alone in his push for a private plan.
He has the support of Federal Finance Minister Jim Flaherty but six provinces have already signed a joint statement saying they would prefer a modest expansion to the Canadian Pension Plan instead.
The Canadian Taxpayers’ Federation says they fully endorse Morton’s call for a private plan.
Scott Hennig tells 660News governments need to make it easier for taxpayers to save money, instead of taking more and more money away in payroll tax.
Hennig says expanding the CPP would just continue to compound the retirement crisis in this country.
“They have to guess 40 years out what the rate of return is going to be, how long people are going to live and what the rate of inflation is going to be and if you get any of those wrong you end up running massive liabilities,” says Hennig. “That’s not a great way to run a pension plan.”
To change the plan, Morton will at least have to try and convince some of his colleagues, which may prove to be difficult.
