HUDAK Weighs In on Public Pensions
Says reform to be "sustainable, affordable and fair"
TORONTO "Ontario's gold-plated government employee pension plans must follow the private sector's lead in becoming sustainable for both employees and taxpayers alike", Ontario PC Leader Tim Hudak discussed today with workers at PE Plus Imaging, a local, high quality print shop.
"Governments and union leaders too often make promises about benefits way down the road knowing they have no plan to pay for them,” Hudak said. “In contrast, the private sector has had to adapt to today’s fiscal realities as they’ve struggled with the rising cost of doing business.
“For example, United Steelworkers union members at Stelco and Vale Inco moved to a more modest and realistic pension plan based on set contributions instead of defined payouts during retirement for their new employees. If we want sustainable retirement security, the government needs to do the same."
Hudak noted that defined benefit pension plans used to work when the province had a small number of retirees and a large number of workers. "Those days are gone and now the pyramid is upside down. We can either deal with the problem head-on, or we can duck our heads in the sand. I support reforms because Ontarians deserve a pension system they can count on."
Hudak referred to the latest Ontario PC discussion paper, Paths to Prosperity: Sustainable Retirement Security, which proposes switching to defined contribution pension plans to avoid costly shortfalls.
“We think everyone should have a chance at a pension. But Ontario’s pension system needs to be fair for everyone, not gold-plated for some and non-existent for others,” Hudak concluded.
To read a copy of the paper, visit: www.ontariopc.com/paths-to-prosperity.