Canada’s pension plan faces ‘daunting challenges’
The Canada Pension Plan (CPP), the country’s largest pension plan, is facing an unprecedented financial crisis that threatens to leave millions of retirees vulnerable to unscrupulous financial advisers.
Story continues below advertisementA number of pension funds and pension plan directors have already left the CPP to take lucrative jobs with major companies.
The retirement savings of tens of thousands of Canadian retirees is at risk because of a shortfall in the CDP, the fund’s main source of income.
The CDP has been operating for more than two decades with little to show for it.
Its assets have plummeted in value, and its expenses have soared as more people have moved into the workforce.
It has also been hit hard by the global financial crisis, which is forcing it to reduce some of its income, and it has been grappling with a debt burden that will be difficult to fully repay.
In recent weeks, CDP chief executive officer Doug Cameron has said he is stepping down after 25 years.
He told reporters at a news conference that he would be stepping down for the second time.
“We’re going to have to find a way to do that and do it well,” Mr. Cameron said.
The problems are not just financial.
They are also human-rights violations.
The CDP’s employees have been threatened, including at least one woman who filed a complaint with Human Rights Watch, accusing managers of retaliating against her.
The crisis is also compounded by a change in government rules that were adopted in 2012.
Prior to that, most workers in the public sector were exempt from paying their pension contributions, a change that had helped the CPD and other large companies in the private sector.
But Mr. Tory said that the CNP is now exempt from the new rules.
The government said that in the future, it would allow workers to pay contributions through a pension plan.
It also said that all of its retirees would have the option of choosing a new plan, rather than the old one.
But the CPs, which are funded by the federal government, have been struggling to maintain the income needed to keep their operations running.
They have had to slash spending and cut back on benefits, including pension benefits.
Cameron said that his government would allow people to pay their own pensions through a private plan.
The Government of Canada has long promised to introduce a private pension plan in the next fiscal year.
It has said that such a plan would be “fair and reasonable” and that its new rules would help people in need.
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