Not very likely, it turns out.
This isn’t really the case. Over the past decade, at least 15 million pensioners in Ontario and Canada have suffered as a consequence of the privatization of public pension funds, according to the Canadian Pension Plan, a trade association that represents government pension recipients.
In a report on privatization earlier this year, Canadian Pension Plan members also pointed out that some of the most expensive pensions in Canada are pension schemes with no interest-rate coverage, some are schemes with rates between 25 and 30 per cent, and are also covered by a few provincialterritorial programs that pay for private employees’ meals at home.
One study by CPP in Ontario found that these schemes have cost the province at least 20 per hour (14 per capita as of 2015), and they’re not just about providing a way to fund the province’s education system while ensuring the cost of services is small compared to those of private companies, which do not have to pay a dividend, said Richard Chappell, an economist at the CPP.
For example, the private hospital system in Canada is in the middle of a massive expansion into Winnipeg, and if that happens, the cost of emergency rooms there could rise, according to Chappell. At least 16 billion in extra cost a year, according to Chappell.
The report found that only 22 per cent of those private schemes have a fixed rate of interest, and that private companies pay nearly half of the overall cost. According to another analysis by the CPP, more than 70 per cent of private pension schemes offer no fixed interest rate at all meaning they offer only the benefits the government has promised to those who get their pensions.
But the other 75 per cent of pension plans offer a fixed rate of compensation so any gains will come at a nominal rate. The CPP study found that those who are eligible for a fixed-rate pension would pay only 2,500 a year, which is just a modest portion of the cost of an initial pension.
So who would be paying the biggest increase
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