The authors find:
- The annual accumulations of wealth in these plans are now much higher than their reported current service costs, meaning that employee contributions will fall far short of their advertised 50-percent share.
- Taxpayers will still bear more than half of the risk of changes in the cost of new obligations and – more important – the entire risk of changes in the cost of servicing past obligations unless the federal plans are converted to target-benefit plans in which benefits adjust depending on funding.
- Federal employees now get tax-deferred saving that is triple or more what Canadians contributing to defined-contribution pension plans or RRSPs get, an unjustifiable unevenness in treatment.
- The proposed reforms will still leave the MPs’ plan completely unfunded, which weakens parliamentarians’ moral authority to lead Canadian pension reforms.