Pension Plans

[wantoplay]

I think it is an age + yrs of service = 80 or something like that... Meaning if a teacher started teaching at the age of 24... but the time he or she was 52, they could retire with full pension... (52+28 = 80...) Not sure if 80 in the magic number, but that's how it works.

aka the 80 factor.

 

[slowpoke]

I think public sector pensions are extremely generous. I know several teachers and Revenue Canada retirees who retired on a full pension in their mid-50's and went on to a second career (sometimes as a "consultant") while drawing a full pension. I also heard that a City of Toronto policeperson (and fireperson?) can retire at age 45.

I did pretty much the same thing. I worked for one of the Bell companies for over 25 years. 7 years ago, I accepted an enhanced retirement incentive package (ERIP) that gave me a decent pension and health benefits (dental, vision, medical & drugs). I get regular reports from the actuaries who manage our retirement fund and they claim it is not underfunded. I hope they're right.

Since my "retirement", I've been working full-time but not as a consultant.

 

[guelph]

Public servants, teachers, etc. have them. Not too many others.

It is slowly dawning on these "labour aristocrats" that they enjoy significant wealth through the funding of taxpayers.

This is not a rant...it is a statement of fact. It will now be interesting to see how they react to McGuinty having to cut government expenses.

Public servants & Teachers -- pay into their pensions used to be 6% of gross if any one saved 6% of thier gross every year for their whole carreer they would have a very hefty Savings.

 

[Peter123]

90

I think it is an age + yrs of service = 80 or something like that... Meaning if a teacher started teaching at the age of 24... but the time he or she was 52, they could retire with full pension... (52+28 = 80...) Not sure if 80 in the magic number, but that's how it works.

for most civil servants...its 90, teachers have a 85...and there are minimum ages (usually 55)...

 

[Cycleguy007]

for most civil servants...its 90, teachers have a 85...and there are minimum ages (usually 55)...

Thanks for the clarification... like I said, I wasn't sure what the magic number was, just that there was one...

 

[Hangman]

And there is a minimum age, usually 55.

 

[Nickelodeon]

Public servants & Teachers -- pay into their pensions used to be 6% of gross if any one saved 6% of thier gross every year for their whole carreer they would have a very hefty Savings.

This is a good point, but it represents 50% of their pension pot...the rest is covered by the taxpayer as part of the negotiated benefits.

I'm not envious of pension plan holders....but we're now in a situation that when there is a serious market downturn and pension investments take a beating (look a Quebec's pension plan)...the question arises as to who should pay to make them whole.

This is very serious. As taxpayers, we're paying for civil servants pensions. If Nortel goes down, are we obligated to pick up their pension plan shortfall too?

That's why there is a big debate going on....and while I personally believe in the "no one else will take care of you, so you need to plan ahead to take care of yourself" philosophy, this doesn't work for 80% of the population who can't figure it out.

So socialized (if not socialist) solutions are being considered.

Again not a problem if we don't go broke in the process, and/or create two classes of retirees ie. a) fully protected civil servants and b) the rest of the population paying for the civil servants coverage while they got nothing.