Call for federal pension policy baffles experts
The Conservative government is developing a funding policy for the pension plans of Canada’s public servants, military and RCMP, a move that baffles experts because the plans have no real funds and own no assets.
A funding policy typically sets the framework for how to cope with risk and manage any gains and losses by adjusting the contributions paid into pension plans.
But the policy, to be crafted by consultants, would cover years of pensionable service in accounts that are nothing more than ledger records with no real assets. Pension benefits are guaranteed by law and paid from government’s main bank account — the consolidated revenue fund.
Pension expert Malcolm Hamilton said he’s puzzled why the government is charging ahead with a funding policy for the “least funded parts” of its unfunded pension plans.
http://ottawacitizen.com/news/national/call-for-federal-pension-policy-baffles-experts
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