Quote:
Originally Posted by Corker
The limit of 70% of salary for pension payments was eliminated by CRA a number of years ago. Contrary to Keith’s point about someone getting 100% or more of their salary as a pension, it would actually be a good thing for taxpayers. It means the employee worked and contributed to the plan for 50 years and ultimately will receive pension payments for far fewer years than if they had retired at their earliest opportunity. A majority of employees, but not all, will retire at their earliest opportunity for an unreduced pension but it benefits the plan when someone delays retiring.
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Reasonable point about delaying retirement leading to extra contribution years. However my point merely echoed the statement made in the presentation that some employees take home more money in retirement than they did while working. This is solely due to the plan's lack of integration with the CPP. This is the first thing that needs to be changed as it would significantly reduce demands on the plan going forward.