The CEO Poll: A prescription for pensions
Canadian CEOs on how to handle the looming pension crisis.
Author:
Joe Castaldo
Date: November 25nd, 2010
Publication: Canadian Business Online
The country’s finance ministers will be debating pension reform when
they meet in Alberta next month. In advance of the meeting, Compas Inc.
polled a group of Canadian CEOs for their thoughts about the topic,
and an overwhelming majority argue that governments should reduce the
public sector’s defined benefit pension plans.
Nearly 80% of the respondents believe public sector pension plans
discriminate against the private sector in that all taxpayers are
required to support them when those plans may be more generous than the
ones received by private sector employees.
“The pensions are now exorbitant and grossly unfair to the normal
working Canadian,” wrote one respondent. “It is part of the feeling of
entitlement that is becoming pervasive in the public sector.”
Another panelist wrote that, “It is important that public sector
employees be given two options — either reduce their benefits in line
with the private sector, or raise their contributions.”
The federal government is also considering Bill C-501, which would
force bankrupt companies to give priority to unfunded pension plan
liabilities, ahead of creditors and bondholders. The CEOs were not
overly supportive of the legislation.
Nearly two-thirds believe that if passed, the bill would discourage
lenders from making loans to struggling companies, and roughly the
same number believe the bill would encourage the phase-out of defined
benefit plans altogether. Slightly less than half (47%) of the
respondents believe Parliament should pass the bill.
To view complete results and additional polls, please click here.
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