Setting the record straight on our pension plan

The usual suspects line up regularly to attack our pension plan. Most recently, the Canadian Taxpayers Federation has been busy spinning the line that our plan is too generous and must be reduced. It’s the usual nonsense, but we must be prepared to push back against the distortions pumped out by groups like this.

What kind of cutbacks is the Taxpayers Federation calling for? How about these three: lower retirement benefits, delay retirement and reduce our plan’s protection against inflation. At the same time, they say we should pay more into our plan. Pay more, get less. Can’t accuse them of making timid proposals.

To justify their position, they talk in terms of a government worker who earns $100,000 per year, puts in 35 years of service and walks away with a $70,000 pension. Sounds pretty rich, but how many of our members earn $100,000 per year? How many put in 35 years of service? A quick reality check shows that the average pension received by retired federal public sector workers in 2009 was only $24,506 – a far cry from $70,000. 

The Taxpayers Federation conveniently ignores the fact that we pay 10 cents of every dollar we earn toward our pensions. That is a considerable amount of money that we give up spending now so that we have a secure retirement in the future. When you save diligently for your retirement over many years, why shouldn’t you enjoy a good pension?

Many Canadians do not have a decent pension plan – or any employer-based plan at all. Canadians should not face a retirement in poverty, but attacking our pension plan does nothing to help those without a good plan. A more constructive approach is to improve the Canada Pension Plan along the lines proposed by the Canadian Labour Congress which is calling for a doubling of CPP benefits. This is a sensible and affordable proposal, despite what business groups like the Canadian Federation of Independent (also a critic of our pension plan) try to spin. 

The business groups opposed to our pension plan will continue their attacks, so be prepared to push back. Our plan began in 1924 and has provided secure retirements for members ever since. It’s worth defending as we promote better retirement security for all Canadians.