In a piece by the Huffington Post which is reporting on the Auditor General’s findings, it is clear that the Ontario Pension Liability coffers are insufficient by some 75 billion dollars. That means that you and I, Joe and Jane Nobody are on the hook for it. Why? Well because much of those plans are promised to contracted union employees of the Ontario government. So as long as there is one tax payer available from which to draw a “revenue stream”, it means that their pensions MUST be paid, even if the province doesn’t have a red penny left in the coffer pot to pay them.
Since the government doesn’t actually generate its own money, where do you suppose Wynne is looking to find that 75 Billion bucks? Might that 75 Billion get diverted from the cash that will be coming in from her new “Pension Plan”?
So keep in mind that public employees get free dental, eye glasses, eye laser surgery, chiropractor and physio services, added health care benefits for short and long term disability, gold plated pension benefits and even life insurance benefits, whereas – we the people who have to continue to pay for it all and are on the hook for it, more often than not, usually do without any and all of those same benefits. Not because we don’t think dental plans and life insurance plans for our loved ones aren’t important – on the contrary, they are. The fact is, that there just simply isn’t enough money left in our jeans to provide that for ourselves once the various levels of government extract their cut and we busy ourselves with simply trying to stay afloat on what’s left.
I’ll spare you the math, and instead I urge you to read the whole Huff article, which shows how this whole new boondoggle in waiting, – equates to essentially a $200,000 to $350,000 lifetime cash grab from each Ontario employee. Of course all benefitting the revenue starved Liberal Government. They are asking you to pay into a fund, where they hold the purse strings and they will keep ALL the money paid in, to spend as they see fit. As the Huff points out, if you put that money in your own savings plan, you’d be ahead of the game by some $350,000. You would be getting paid interest per month on your own money PLUS you would still own the 350K, not the government.
What many also still do not understand is that anyone who runs a small business, or is self employed, stands to get hit with not only the employee contribution, but you must pay your employer portion as well. For many, this cap of 1600 per year, will actually equate to DOUBLE the stated premium to a total maximum of 3400 bucks per year to Windmill Katie’s Government!
While it is still unclear how some of this Plan will be administered something about this whole idea simply stinks. The fine points are not forthcoming as of yet, as I suspect it is in part because there hasn’t been enough fiddling with needed loopholes in order to send endless streams of that newly incoming cash into general revenues, other barren budgetary areas and other Liberal pet projects.
Unless Wynne and her gang can figure out all the ways to get their hands on that new revenue stream, and spend it as they wish, (instead of locking it in legally to be maintained for its sole purpose which is: a FUND that could not be drawn against or pillaged for other government spending sprees.) – Unless Wynne and her gang can solidify their ability to divert that new cash to other areas whenever they please, HOWEVER they please, there really isn’t much of a reason to implement the plan at all.
In any case, the amount of times we hear about missing billions with this bunch is simply staggering. I do think there is a direct correlation between the fact that there is a 75 billion dollar Union Sector Pension liability short fall and this latest tactic to generate new money. They are going to have to find a way to drum up this 75 Billion bucks from somewhere, or more accurately, from someone. That someone is you and me.
This of course is where Liberals truly excel – they are pros at selling a shiny “Pension Fund” bait and switch shell game. Let’s face it, is far more palatable to sell something shiny and pretty to the unsuspecting Ontarian, than to simply tell them the truth – which is: Hey, our Pension funding is 75 Billion in the hole, with no way to make up that money and with no way to divert that money from other general coffers either…. and so we need gobs of money from each and every one of you so that we can make sure we have enough cash to pay our union employees their pensions.
I wouldn’t count on Joe Average ever seeing a red cent of this new pension money getting back into his jeans. I’m betting that Wynne and her Government will have long since spent it on other things.