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RECENTLY I READ that a principal at Mercer Ltd. had called the Canada Pension Plan "an intergenerational embarrassment", which he said raises fears of intergenerational conflict (The Globe and Mail, 8 June 1996, p. B-1). These are pretty strong words!
At root is the contention that people who receive pensions from the C.P.P. are receiving significantly more from the Pension Plan than they ever paid into it. To illustrate this, the experience of a retired "financial executive", now 72 years old, was cited. That person himself calculated that the combined total that had been paid into the C.P.P. on his behalf, by himself and by his employer(s) during his working life, had been $18,600. Now get this:
"Had that amount been invested in a private savings plan, earned interest over the years and used to buy an annuity when he reached 65, seven years ago, he would by now have received $14,300 in payments. Instead, the CPP has paid him more than $54,000...". The extra $40,000 appeared in the picture as pure gravy.
THIS WAS A SHOCKER TO ME . I guess, like most people, I assumed all these years, that somebody - somewhere - was checking out things like pension plans (including even the Canada Pension Plan) to make sure they're fiscally sound, or at least that they are proof against such orgiastic disproportion as that example purports to illustrate. At this point, I would really like to see other examples worked out, to know how typical that case is.
IF IT IS THE TYPICAL CASE within the C.P.P., it's hard for us who draw Canada Pensions to escape looking like a bunch of social freeloaders, living high off the avails of other people's work namely that of our younger generation. Any such perception as that, is bound (rightly or wrongly) to add fuel to the intergenerational conflict the Mercer man was talking about.
Which leads me to one observation on that "conflict". I must say I don't blame those of the younger people who have grown weary and even resentful over the years, as they've watched those well-heeled grey-heads demanding their "rights as senior citizens" their discounts, their privileges, their freebees. Let's face it: as a group, we've got it pretty good! This gafuffle about the Canada Pension Plan suggests we'd be wise not to push the envelope too far.
Congratulations to Alex Gnyp, one of this year's retirees (Civ Eng), on his being one of six outstanding volunteers to receive a Citizenship Award from the Lung Association of Essex County. The award recognized Alex's work devoted to issues relating to air quality and asthma...//
...I called Francis Leddy's residence on June 12th and spoke with their nurse-in-residence, Amanda McCullough. She told me that both Kathleen and Francis are coming along well and are looking forward to the summer. Ms. McCullough takes them for regular walks, and Francis still very much enjoys his classical music...// ...According to reports I have heard, Leonard Kroon, always environmentally conscious, achieved recognition for a recent project involving only recyclable materials. I'd be glad to get the details, Leonard, for the next issue.
Bill Phillips
GEORGE MCMAHON is very well known to our membership, having been with the University for many years as Assistant Vice President, Alumni Affairs. A tribute is being given on the occasion of his retirement, and all are invited. Details are as follows: DATE: Fri., Sept 20, 1996; TIME: 6.30 Cocktails/7.00 pm Dinner. (Cash Bar); PLACE: Serbian Community Centre, 6770 Tecumseh Road East. $30.00 per person. (Includes Dinner and Gift). Advance purchase only, on or before September 6th. Tickets, call Silvio Pettovel, 253-4232, Ext.3162.