Statement made on 20 October 2011 by Senator Joseph Day
Hon. Joseph A. Day:
Honourable senators, my question is for the Leader of the Government in the Senate. It relates to employment security and retirement security, particularly in light of recent announcements. Recently, it was announced that $226 million is to be cut from the Veterans Affairs budget, which will undoubtedly have an impact on employment.
Yesterday, over 100 employees of ACOA, the Atlantic Canada Opportunities Agency, an agency extremely important to Atlantic Canada, received letters of termination. That is in the public sector and we know a lot more is coming in that regard, honourable senators.
As well, in the private sector, 2,500 jobs will be eliminated by Maple Leaf Foods over the next two years.
Specifically with respect to retirement security, the government has floated a proposed solution to the increased worries of Canadians regarding their retirement income in what is called a "pooled registered pension plan." This solution, however, has proven to be of very high cost for very little return. Australia has a similar program, which has shown that despite more money being put in by the individual, the returns are mediocre at best. Employers in this pooled registered pension plan are not required to pay into the program and, therefore, it is not really a pension at all; it is a retirement savings plan that is being proposed. It is not a defined benefit like the pension that many of us here will be pleased to receive. We will know what we will be receiving. It is not a defined benefit; whatever is in the account at the time you start drawing is what you get.
The Canada Pension Plan, however, currently protects the individual from inflation and lasts for the lifetime of the contributor, unlike this pooled pension plan.
Now that this idea has been floated for a couple of years by the federal government, can the minister tell us that this ill-advised scheme has been abandoned by the government?
Please click here to read the full text of the Senator's question