Extreme pension scenario

Re: “Great surplus, but more debt,” Editorial, July 3.

The Herald editorial board just doesn’t get it. The closing line of your diatribe states “... and pension liabilities which clearly point to the ever-growing need for pension reform to protect future generations from much hardship.”

According to the Canadian Taxpayers Federation, Canada’s national debt is $619 billion and growing at a rate of $7 million a day. Do we worry about the effect of that on future generations? Of course not, as it is only a problem if that amount of debt is called in by its holders, a hardly likely scenario.

The same holds true for the public service pension plan. Any unfunded liability is only a problem if every employee retired today and claimed their pension, an impossible scenario. The national debt is growing largely because of interest charges on that debt. Such is not the case for the Local Authorities Pension Plan, which last year took in more revenue from contributions and interest earnings than it paid out in benefits. This was due primarily to contributions by current employees and wise investments.

I paid into that pension plan for 35 years, thus supporting those who retired ahead of me. I have earned my pension, just as they did and just as those who are presently contributing, and those who follow that group are earning their pensions. This has nothing to do with forcing hardship on future generations.

If the Herald really wants to get at the nub of unfunded liabilities, please ask the province why for many years they spent our pension contributions by placing them into general revenues instead of a pension plan.

Ed Tickles, Calgary