Solutions for Municipal Pension Plans
The pension plans of municipal employees across the province of Quebec face deficits totalling $3.9 billion. For certain municipalities, pension plan contributions have exploded over the past few years. The Quebec government recently introduced a bill whose purpose is to ensure the sustainability of these plans, but that does not call into question their underlying principles. This Economic Note explores the causes of municipal pension plan deficits and proposes solutions that are missing from the current debate and whose aim is to prevent future deficits and save taxpayers from having to shoulder the burden.
Links of interest
Media release: The MEI proposes defined contribution plans and indexing the retirement age