New proposals continue to shrink public sector pensions
In case you missed it, last week marked the most recent skirmish in a much larger battle to bring burgeoning public-sector compensation costs under control.
The Ontario Municipal Employees Retirement System (OMERS), the largest pension fund in Ontario , is studying a change that would reduce the key figure used to calculate how much money an employee will receive each year in retirement.
The proposal would reduce the “multiplier” rate now used to calculate when workers would be entitled to full benefit to 1.85% from 2%. Other potential changes include curbs on indexing for inflation and a delay in early-retirement eligibility.
Currently, a full pension at OMERS is equal to 70% of an employee's top five years of income. With the current multiplier, that means it would take 35 years to reach that point.
Under the new proposal, workers -- which include paramedics, transit workers, firefighters, police and city workers -- would have to work three years longer to reach that threshold. While that may not seem like much for those without any plan at all, it is a big deal for those currently participating.
OMERS, like many pension plans, is under-financed because of low interest rates and so-so stock market returns, and currently has a deficit approaching $10-billion. This change would go a long way to reducing that number, the employer group maintains.
And they're not alone in angling for change. Recently, Aon Hewitt talked to employers concerning likely actions over the next year in respect of the design, management, and delivery of their pension plans.
Click here for that report.
Is your pension plan provider telling you the rules are changing? How so?
By Gordon Powers, MSN Money
Posted by: Jozef Spakowski | May 28, 2021 1:39:31 PM
What it is pension "Plan" Can we all have to" or it is only for who ? Today most people in most of profession must open their own company before they start to work full time without of any benefits at all. If you don't like you don't get the job, simple as that.
My property tax last year was higher of $160 and this year was raised again of $160. With no permanent jobs, with no minimum benefits (statutory holidays at least or other any basics in a democratic society) as government workers the society is questionable or not ?
Posted by: Jozef Spakowski | May 28, 2021 4:58:39 PM
Mayor of Calgary said money for increased Property Taxes become available because of increased Property Taxes.
Not exactly, for information my friends , money become available long time ago with bed decision against of Senior Citizens with mayor Ralph.
Posted by: Jozef Spakowski | May 28, 2021 5:04:38 PM
Education Property Tax was Introduced for Senior Citizens with Mayor Ralph.
Posted by: John C. | May 29, 2021 10:08:17 AM
The commenter Joe needs to become more proficient in his use of the English Language as his comments make no sense what so ever!
Posted by: dan mcmanaman | May 29, 2021 10:31:59 AM
reduce the maximum to 50% of the highest 5 year average of earnings.full retirement benifits only after 65 and 35 years service with no cola benifit.
Posted by: Jozef Spakowski | May 29, 2021 10:36:55 AM
John H. what is your name ?
senior Canadian Citizens should not pay " Educational Property Tax" at all John H. As far as my English the proficiency is good for most of people except you. Its happen from time to time when I writing on issues , such as Property Taxes people as you can write better and make sense out of it.
Posted by: Donnat | May 29, 2021 10:49:46 AM
I agree 100% with Dan....government pensions are FAR too generous and us taxpayers cannot afford to fund them to that extent anymore.
@John H.....there is no need to put down Joe. He is expressing his opinion the best he can!
Posted by: mike g | May 29, 2021 11:22:00 AM
ALL public sector workers should have a paring knife taken to their pensions NOT an ax.Not just OMERS,but everyone right up to the premmie and the PM.Don't cut people on the floor like teachers, caretakers ,and other while you increase useless bureaucrats(make work for their friends).
Posted by: C.M.Downs | May 29, 2021 11:55:41 AM
In regard to this article ...adjustments are necessary when you have a deficit....however lets note these plans were put in place many decades ago and those near retirement should not be penalized as they have no time to recover the funds needed....Just so you now I have not ever worked in any public capacity but note that many of these folks are highly educated...and in some cases...fireman ...police do very dangerous and stressfull occupations.Keep also in mind what most of these articles do not state...as interest rates rise and they will..even to say 3 or 4 %...(imagine 7 or 8)...these pension funds would then have a surplus..anyone remember "pension holidays"...mandated by tax rules by the way.....Also why should the companies get away with underfunding ....the shareholders get the benefits...as owners in dividends and profits,...who do they think makes the profit..the employees of course....anyway as a pension expert I can tell you this is way overblown ..we need leadership on this issue...not cuts or more taxes but an equitable pension for all Canadians ....with proper contributions and yes perhaps working a bit longer.....but thats another issue...if I stay till 65...where will the younger generation get good jobs...Good Luck!
Posted by: Jozef Spakowski | May 29, 2021 12:07:05 PM
Thanks my friends for my new name Joe and sorry for my new English language. But I should go back to the issue.
Mike g you deserve the best rating in English proficiency and your opinion for what you wrote :
"While you increase useless bureaucrats (make work for their friends)
@ Donnat thanks
Posted by: GrandPa | May 29, 2021 12:25:48 PM
I see property tax increasing 5% due in July;
therefore,
Rent apartment notice states 10% increase starting July 1st...
but,
it's OK as senior's pension increased $15.00 per month beginning in July.
I'm sure glad government is looking after my financial well-being - the politicians have said so!
But, I just wonder WHY I'm short $45.00 per month after all these necessary benefits that are good-for-me?
Rich get richer - poor become poorer does seems closer to the truth.
Posted by: Matt | May 29, 2021 3:21:44 PM
Good!
Posted by: Kyle | May 29, 2021 4:16:56 PM
Lol, what do you people expect. This is Canada. Charge more get less. Unless we all revolt at some point here, pensions, free speech, a good life.... all things of the past.
Posted by: tom | May 29, 2021 6:07:47 PM
it's about time they start reigning in these ridiculous payouts with taxpayer subsidized pensions, the public sector has gone off the rails and it taking everyone else with them, right down the hill.
Posted by: tom | May 29, 2021 6:15:33 PM
give it up, C.M.Downs
my job is much more dangerous then cops who spend most of their time hanging out in donut shops and behind buildings having a good ol time on the clock. Firefighters are pretty much the same, they work 2 days a week and spend most of their time hanging out in the firehouse working out and just doing nothing, 8 days of work per month, I don't feel bad for them at all. If the pension were sustainable on their own dime then there is no issue, but since they are highly subsidized by taxpayers forget it. As for education, the private sector has many more educated people then the public hence why we have idiots for politicians, we need real business type leaders to run this country but they wont do it because they make much more in salary in the private sector.
Posted by: r | May 29, 2021 9:40:00 PM
I am one of those fat cat bureaucrats.... cranking out EI benefits which would NOT get paid If I did not do my job.
I work about an hour of unpaid overtime daily. I make just about $55,000 per year. Far less than most firemen and police and teachers.
And last time I checked, there is a hefty $250 pension deduction coming off my paycheque EVERY TWO WEEKS....
Thats right folks.... WE PAY FOR A BIG PART OF OUR PENSIONS OURSELVES!!!!! through payroll deduction. SO BE CAREFUL AND GET YOUR FACTS STRAIGHT!!!!!!
Posted by: gck1418 | May 29, 2021 10:49:34 PM
Before we attack pensions for people who work....lets consider the recent increase in welfare benefits....for people who don't work..... implemented by our new premier at the insistance of NDP leader Horvath....
Posted by: linda | May 29, 2021 11:52:21 PM
tom contradicted himself nicely when commenting on the supposedly small amount of work done by some public sector workers, but then noted that people make much better salaries in the private sector - what exactly is the problem you're pointing out, tom? I've worked in health care a number of years, and am certainly not entitled to a huge pension, while also working tons of unpaid overtime over the years. Mind you, my husband will have no pension, having worked in small businesses over the years, where if he's lucky, they match some RRSP contributions. We'll need my small pension in order to survive in later years.
By the way, I also have difficulty understanding Jozef.
Posted by: Jozef Spakowski | May 30, 2021 9:30:07 AM
Linda , please read carefully what is the issue. My comments are not about your income or future pension at all. If my comments would be more clear some people would come to my home and do something I would not really like. My comment is about people working in private industry 50 + years with no Pension Plan (just slightly over $1000 monthly) and Government workers such as some Bureaucrats. Linda you like your office in Glenmore Landing in Calgary ? I thing I going to vote for you.
Posted by: George Brown | May 30, 2021 3:09:15 PM
SCREW U " R "