Pusser
Army.ca Veteran
- Reaction score
- 37
- Points
- 530
Keep in mind that our pension fund does not work the same way as those in the private sector. In fact, prior to the 1990s, there was no fund at all. Federal pensioners simply remained on the government payroll (at a lesser rate) until they died. In other words, pension payouts came from current revenue. The idea of putting money into a separate fund and then investing it in order to sustain further payouts is relatively recent in the management of federal superannuation and the only reason it was introduced was in order to manage government funds better and more responsibly - a good thing. However, none of this changes the provisions of the CFSA, PSSA or RCMPSA that define the benefits we receive in the end. The financial success of the three federal plans is irrelevant in that shortfalls are covered from current revenue. Only a change in legislation can affect our benefits. Is it impossible for the government to change legislation? No, but I would argue that it is unlikely (federal pensioners are a powerful voting block and all the staff work to make changes to legislation would be performed by people who would be affected by it).
I stand by my argument that the three federal pension "funds" are largely accounting tools and that their surplus or deficiency is of minimal consequence to our retirement benefits. And that minimal consequence can only be brought about through legislation which would be very difficult to pass.
I stand by my argument that the three federal pension "funds" are largely accounting tools and that their surplus or deficiency is of minimal consequence to our retirement benefits. And that minimal consequence can only be brought about through legislation which would be very difficult to pass.
