May 06, 2014
By Bob Komsic
In his spring report, the federal auditor general says this country’s public pension plans could cost taxpayers billions as retiring civil servants live longer.
Michael Ferguson recommends they be evaluated periodically and undergo any changes required to ensure their sustainability.
He looked at the three major pension plans – the public service, Canadian Forces and RCMP – which represent the majority of Ottawa’s pension liability.
Ferguson has found the plans experienced funding deficits of $6.5-billion the last three years.
The auditor general’s office projects the government’s share of pension benefit costs for those three plans could rise from $3.3-billion in 2017 to $13.5-billion by 2050.
The group CARP – a new vision of aging – has reacted.
Vice-President for Advocacy, Susan Eng, says ”Investment performance matters. Good management and good governance matters. It also matters whether or not they made contributions on time in the past or whether they under-priced their contributions”.