The expanded CPP’s overall rate of return for workers is a meagre 2.5 per cent.
Against a backdrop of persistent deficits and growing debt, the federal and many provincial governments are engaged in collective bargaining negotiations with their public-sector unions.
As the Quebec government struggles to eliminate its deficit and rein in the largest debt burden in Canada, it has identified government-sector compensation as a way to restrain spending and balance the budget in 2015/16.
Government workers in B.C. make more, receive better pensions, and retire earlier than private sector workers in similar positions
The government sector in Alberta is unhappy and they want Premier Alison Redford and her colleagues to know it. Universities are advertising against provincial reductions in their funding; government unions are activating their members about proposed pension changes, reforms that would make them more akin to the private sector and less like a taxpayer-funded entitlement.
It is not clear why the government sector believes it must be immune from change. The case for reform is not difficult to make.
Canadians routinely hear about alleged growing divides in Canadian society. But here is one rift that often goes unmentioned: the divide between the pension benefits of public sector employees and everyone else.
Such inequality incurs real costs, where ordinary taxpayers pay ever more for above-market, guaranteed pension benefits that ever fewer in the private sector possess.