Much of the NDP’s focus in Nova Scotia has been in bailing out failing industries which will likely be gone in a few years time. While heralding the notion our ship has finally arrived, spending on grandiose bailouts, energy links, buying up lands filled with trees, topping up Government employees pension plans etc, etc, have taken a big toll on the Province’s ability to cope financially. The poor Finance Minister doesn’t know what hit her. It’s as if the revenues from the ships are being borrowed from the future to pay for many programs and projects now. This is dangerous and very short sighted as the Ships contract can be changed at the discretion of the Federal gov’t. Look around at the economic landscape and we see Canada is fastly moving into a funk. Housing is slowing down, debt levels for Canadians are at record levels, and there is a growing severe energy price imbalance between east and west .This latter one is already playing havoc with Alberta’s finances. It is also playing havoc with Eastern Canada as we see our fuel expenses for our home, cars, and businesses shoot through the roof. This is a national emergency and should be treated as such. Our Premier should be concentrating on getting a pipeline to Nova Scotia rather than an undersea link. The cost of going green is turning everything red as I see it.
Nova Scotia, however, can’t take all the blame for their wayward and ill conceived philandering. The Federal gov’t has to share in this too and should be leading the way to get the west east pipeline up and running as quickly as possible. It shouldn’t be about years but months otherwise a recession could strike.
The special interest groups and provinces opposing a national west east pipeline should be cast aside .Shame on Premier Clarke and shame on the First Nations and environmentalists for holding Canada hostage over all their griping and poor me attitude. Shame on all those who have caved into this. Instead they should have been taking these misspent billions to build a proper national pipeline infrastructure years ago. This is one time where the Prime Minister should overrule all who oppose these pipeline projects. He’s good at shutting down Parliament so this should be a no brainer. We in the east can’t take much more with our high taxes and unrelenting fuel and energy costs. It comes at a good time because it looks like a lot of people could use the work here and now.
Richard thank you for your note.
As sole trustee of the plan the Minister did have the right to make the change to inflation indexing. There are very fewer defined benefit plans left in the private sector because of the high and volatile cost. Those few that do would typically have no inflation indexing or indexing dependant on the plans’ finances being healthy.
You are right to say that the possibility of indexing being affected was not well known to retirees. It is even more true that taxpayers, most of whom have no pension plan at all, had no idea that they could suddenly be tapped for $536 million to shore up the funding of the PSSP. That money does not come from a vault. It comes from taxi drivers, IT professionals, doctors and lawyers, retail clerks, the server who passes you your double double at Tim Hortons. You can safely assume that their experience with their own RRSP’s, if they have one, has been much more disappointing than what you have experienced. And yes, the pensioners of the PSSP also pay those taxes.
Good Morning Mr Black
I am sending this to comment on an opinion you expressed in your recent “editorial” in Saturday, January 5,2013 Business Section of the Chronicle Herald page C5, “Province must learn how to stop writing big cheques”.
I agree with you whole heartedly that we must live within our means and be fiscally responsible. However, I do take exception to you congratulating the current government’s legislation in respect to changing indexing of civil service pensions. This change is unfair to both retirees and current employees.
I do see the merits of defined contribution pensions going forward. The NSGEU has also seemed to support this position. Although their position is contrary to the obvious benefit of defined benefit plans. I expect they are concerned because their members pension contributions would rise. However, in my opinion, the value of an indexed pension offsets this cost especially when the province pays half, the contribution is tax deductible and it represents forced savings. I am sure you would welcome a defined benefit pension if you do not already have one.
A useful quote from David Chilton, The Wealthy Barber, at page100 of his recent book “The Wealthy Barber Returns” clearly lays out some of the issue.
“There is a common misconception about defined benefit pension plans that needs to be cleared up. Many Canadians think that employees don’t make any contributions to their DB plans. That is not always the case. Often participants have significant deductions from their pay cheques to help fund their plans. In fact, it could be argued that the employee is even making the employer’s contribution. That sounds nonsensical, but when you think about it , all contributions are really part of the compensation plan, a plan that has to be competitive enough to attract the right employees. Instead of taking all their compensation in current income, the employees
are taking some in the form of a defined-benefit pension. Good move. Tax deductible forced savings.”
The issue for retirees is that the indexing rules were changed retroactively. This is unfair. My own personal situation is that I had already retired and made the decision to retire based in part on an indexed pension. Now I am not so sure I did the right thing. It surprises me that the Province of Nova Scotia can do this since I am fairly certain it would not be allowed in the private sector. Please correct me if I am wrong.
The other galling thing to me is that I chose to work for government even after having opportunities to work in the private sector at a higher income in part because of an indexed pension. I thought my pension was a condition of employment and part of my benefit package. Apparently it may not be.
So when is a deal not a deal?
Your thoughts on this would be much appreciated.
As I have mentioned before, I enjoy your articles on budget and balanced budgets. Although unpopular, real, hard decisions need to be made to balance the budget and lead to zero debt at some point.
As a young professional who works in Halifax and lives in New Ross, I am comfortable taking service cuts and continuing to pay higher taxes, if the vision I voted for, actually transpires. That vision is a balanced budget. I am concerned that Nova Scotians want the same thing but are unwilling to take the short term pain for long term gain. I have been impressed with many thing Premier Dexter has done but there is always room for improvement. Make the necessary cuts that were promised so we can stop kicking the can down the road and face the situation of unbalanced budgets, head on.
Budgeting can’t have been all that responsible this last 50 years or so, for there is that debt thing that we have to credit. But, to become more responsible and deal with the credit, after all, will only take away from all the spending we have enjoyed so much.
And where have we spent? To those geared up to take. Where does it come from? From those who make!
If the makers are to continue to pay the bills, are there sufficient of them?
The answer to balanced budgeting is whistling in the economic winds – which need to change.
There is simply too much government (TMG).
Much of the NDP’s focus in Nova Scotia has been in bailing out failing industries which will likely be gone in a few years time. While heralding the notion our ship has finally arrived, spending on grandiose bailouts, energy links, buying up lands filled with trees, topping up Government employees pension plans etc, etc, have taken a big toll on the Province’s ability to cope financially. The poor Finance Minister doesn’t know what hit her. It’s as if the revenues from the ships are being borrowed from the future to pay for many programs and projects now. This is dangerous and very short sighted as the Ships contract can be changed at the discretion of the Federal gov’t. Look around at the economic landscape and we see Canada is fastly moving into a funk. Housing is slowing down, debt levels for Canadians are at record levels, and there is a growing severe energy price imbalance between east and west .This latter one is already playing havoc with Alberta’s finances. It is also playing havoc with Eastern Canada as we see our fuel expenses for our home, cars, and businesses shoot through the roof. This is a national emergency and should be treated as such. Our Premier should be concentrating on getting a pipeline to Nova Scotia rather than an undersea link. The cost of going green is turning everything red as I see it.
Nova Scotia, however, can’t take all the blame for their wayward and ill conceived philandering. The Federal gov’t has to share in this too and should be leading the way to get the west east pipeline up and running as quickly as possible. It shouldn’t be about years but months otherwise a recession could strike.
The special interest groups and provinces opposing a national west east pipeline should be cast aside .Shame on Premier Clarke and shame on the First Nations and environmentalists for holding Canada hostage over all their griping and poor me attitude. Shame on all those who have caved into this. Instead they should have been taking these misspent billions to build a proper national pipeline infrastructure years ago. This is one time where the Prime Minister should overrule all who oppose these pipeline projects. He’s good at shutting down Parliament so this should be a no brainer. We in the east can’t take much more with our high taxes and unrelenting fuel and energy costs. It comes at a good time because it looks like a lot of people could use the work here and now.
John Moore | February 11, 2013 |
Richard thank you for your note.
As sole trustee of the plan the Minister did have the right to make the change to inflation indexing. There are very fewer defined benefit plans left in the private sector because of the high and volatile cost. Those few that do would typically have no inflation indexing or indexing dependant on the plans’ finances being healthy.
You are right to say that the possibility of indexing being affected was not well known to retirees. It is even more true that taxpayers, most of whom have no pension plan at all, had no idea that they could suddenly be tapped for $536 million to shore up the funding of the PSSP. That money does not come from a vault. It comes from taxi drivers, IT professionals, doctors and lawyers, retail clerks, the server who passes you your double double at Tim Hortons. You can safely assume that their experience with their own RRSP’s, if they have one, has been much more disappointing than what you have experienced. And yes, the pensioners of the PSSP also pay those taxes.
Bill Black | February 6, 2013 |
Good Morning Mr Black
I am sending this to comment on an opinion you expressed in your recent “editorial” in Saturday, January 5,2013 Business Section of the Chronicle Herald page C5, “Province must learn how to stop writing big cheques”.
I agree with you whole heartedly that we must live within our means and be fiscally responsible. However, I do take exception to you congratulating the current government’s legislation in respect to changing indexing of civil service pensions. This change is unfair to both retirees and current employees.
I do see the merits of defined contribution pensions going forward. The NSGEU has also seemed to support this position. Although their position is contrary to the obvious benefit of defined benefit plans. I expect they are concerned because their members pension contributions would rise. However, in my opinion, the value of an indexed pension offsets this cost especially when the province pays half, the contribution is tax deductible and it represents forced savings. I am sure you would welcome a defined benefit pension if you do not already have one.
A useful quote from David Chilton, The Wealthy Barber, at page100 of his recent book “The Wealthy Barber Returns” clearly lays out some of the issue.
“There is a common misconception about defined benefit pension plans that needs to be cleared up. Many Canadians think that employees don’t make any contributions to their DB plans. That is not always the case. Often participants have significant deductions from their pay cheques to help fund their plans. In fact, it could be argued that the employee is even making the employer’s contribution. That sounds nonsensical, but when you think about it , all contributions are really part of the compensation plan, a plan that has to be competitive enough to attract the right employees. Instead of taking all their compensation in current income, the employees
are taking some in the form of a defined-benefit pension. Good move. Tax deductible forced savings.”
The issue for retirees is that the indexing rules were changed retroactively. This is unfair. My own personal situation is that I had already retired and made the decision to retire based in part on an indexed pension. Now I am not so sure I did the right thing. It surprises me that the Province of Nova Scotia can do this since I am fairly certain it would not be allowed in the private sector. Please correct me if I am wrong.
The other galling thing to me is that I chose to work for government even after having opportunities to work in the private sector at a higher income in part because of an indexed pension. I thought my pension was a condition of employment and part of my benefit package. Apparently it may not be.
So when is a deal not a deal?
Your thoughts on this would be much appreciated.
Richard O'Brien | February 6, 2013 |
Bill,
As I have mentioned before, I enjoy your articles on budget and balanced budgets. Although unpopular, real, hard decisions need to be made to balance the budget and lead to zero debt at some point.
As a young professional who works in Halifax and lives in New Ross, I am comfortable taking service cuts and continuing to pay higher taxes, if the vision I voted for, actually transpires. That vision is a balanced budget. I am concerned that Nova Scotians want the same thing but are unwilling to take the short term pain for long term gain. I have been impressed with many thing Premier Dexter has done but there is always room for improvement. Make the necessary cuts that were promised so we can stop kicking the can down the road and face the situation of unbalanced budgets, head on.
Bill – keep up the great conversations!
David Meister | January 18, 2013 |
Budgeting can’t have been all that responsible this last 50 years or so, for there is that debt thing that we have to credit. But, to become more responsible and deal with the credit, after all, will only take away from all the spending we have enjoyed so much.
And where have we spent? To those geared up to take. Where does it come from? From those who make!
If the makers are to continue to pay the bills, are there sufficient of them?
The answer to balanced budgeting is whistling in the economic winds – which need to change.
There is simply too much government (TMG).
gordon a.... | January 7, 2013 |