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Monday, October 3, 2016

An end to private pensions?

Death of private pensions puts more pressure on CPP: Cohn

Long live the CPP. Private pensions are on life support, and fading fast.

It’s human nature to ignore pension tensions. Until the money runs out.
Full credit to our political leaders for coming together to expand the Canada Pension Plan this summer, recognizing that a looming retirement shortfall requires a long-term remedy.
Their historic CPP deal came just in time, for time is running out on conventional pensions in the private sector.
Long live the CPP. Private pensions are on life support, and fading fast.
If anyone still doubts the need for concerted action, or ignored the high stakes negotiations over the summer, here are two bracing wake-up calls from just the past week:
First, unionized autoworkers at GM made an unprecedented concession to relinquish full pensions (which pay a defined benefit upon retirement) for newly hired employees. The agreement, ratified by Unifor members over the weekend, marks the end of an era in retirement security.

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