public sector pensions
Now that the province has reaffirmed its intent to lightly modify government employee pension plans, government unions will again try to divert the public from the facts.
For example, after my recent column on the ever-increasing cost to taxpayers of public sector pension plans, Guy Smith, president of the Alberta Union of Provincial Employees and Marle Roberts, president of the Canadian Union of Public Employees (Alberta), cried foul.
One theory about politics is that because politicians must get votes to stay in powerthats their currency they are unlikely to act against their own self-interest. So politicians cater to the specific voters who put them in power in the first place.
Imagine if governments engaged in a massive spending binge over the last decade, with the benefits falling to just a small part of the populationand then hiked taxes four times to pay for it. Now imagine if they argued, in some Orwellian twist of illogic, that such excess generosity was fully funded, affordable, and sustainable this after the multiple tax hikes demonstrated they were not.
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.