As the Ontario government moves ahead with plans for a new mandatory provincial pension program in January 2017, early signs suggest the program will be largely modelled after the Canada Pension Plan. Ontarians, however, would benefit from a broader debate that looks beyond their borders.
The Ontario government's proposal to supplement the Canada Pension Plan with its own compulsory pension plan is based on a series of faulty assumptions.
In Alberta, almost twice as many workers in the government sector possessed defined benefit pension plans in 2011 when compared with private sector employees. That might explain why so many government employees unions, from the Alberta Union of Public Employees to the United Nurses of Alberta, vociferously oppose modest pension reforms proposed by Finance Minister Doug Horner.
As Canada's finance ministers meet to discuss the Canada Pension Plan, the debate has thus far been insulated from international pension models and limited to whether or not we should expand the CPP.
The upcoming meeting of federal and provincial finance ministers will touch on whats become a politically charged debate about expanding the Canada Pension Plan (CPP). Proponents have tried to convince Canadians they are not saving sufficiently for retirement with some even suggesting we are on the brink of a retirement crisis. These views simply do not reconcile with the available empirical evidence. Thankfully, theres no retirement crisis in Canada.