Thursday, December 16, 2010

Once again, Flaherty is fronting for the insurance industry

Jim Flaherty killed income trusts at the behest of the insurance industry, now he's directing Canadian's retirement savings into the laps of the insurance industry....just wait and see who is the greatest beneficiary of this concept of a pooled retirement savings plan. If not the Manulifes and Power Financials of this world, them who?

Flaherty pitches private-sector retirement plan
Bill Curry
Globe and Mail
Thursday, Dec. 16, 2010 10:24AM EST

Finance Minister Jim Flaherty wants to encourage Canadians to save more for retirement – particularly self-employed workers and those who do not currently have a company pension plan.

Billed as Pooled Registered Pension Plans, the scheme is described in a nine page draft report prepared by the federal Finance Department and released Thursday morning. It comes just ahead of a Sunday and Monday gathering of federal, provincial and territorial finance ministers in Kananaskis, Alta.

“With respect to retirement income, I hope we will be able to agree on a framework for Pooled Registered Pension Plans,” Mr. Flaherty writs in a Dec. 15 letter to his counterparts. “This would improve the range of retirement savings options available to Canadians as well as provide low-cost retirement options allowing participation by employees – with or without a participating employer – and the self-employed.”

The plan would be administered by regulated private-sector institutions, according to the policy draft.

The focus on a new private-sector fund is only one of two options that a majority of the finance ministers agreed to when they last met in June in Prince Edward Island. The second option was to bring in “modest” enhancements to contributions and benefits under the existing, mandatory Canada Pension Plan.

Mr. Flaherty’s embrace of that option came as somewhat of a surprise and was embraced by labour unions, including the Canadian Labour Congress, who argue further voluntary options will not address the fact that some Canadians aren’t saving enough for retirement.

Yet Mr. Flaherty’s letter is silent on that option. The minister is scheduled to speak with reporters at 10:55 a.m. Thursday.

Alberta Finance Minister Ted Morton was the most vocal critic of enhancing the CPP. He argued that the private-sector option would better target the problem, which he said is primarily middle-income earners who do not have a workplace pension.


Anonymous said...

I saw in the news the other day that Bernie Madoff's son committed suicide on the second anniversary of Bernie's arrest. The son, apparently, put some old and close friends into Bernie's fund. You have to figure that the son didn't know and trusted his old man.

Madoff investors lost $18 billion; see

You gotta figure that the son was stricken with terrible guilt feelings.

The Honorable James M. Flaherty caused $35 billion of losses to investors who trusted the Most Honorable Stephen J. Harper's promise "Never to double-tax income trusts."

Last time I heard James M. Flaherty is still proud of what he did.

Bruce Benson said...

Yes,Flaherty walks the hallways of the CCCE proud of his service to these low life money grubbing self centered pompus assholes. The 35 billion he cost ordinary Canadians is of no concern to him. Flaherty and his fat cats are content having consumed the Income Trust Mouse.

Anonymous said...

I took my money out of Manulife. I don't want to deal with them any more. BB

Anonymous said...

Flaherty simply obeyed his corporate masters on the income trust file. He doesn't give a toss about ordinary Canadians.

Dr Mike said...

Jim Flaherty get away from me , leave me alone , hands off my wallet.

My wife & I were completely happy with our retirement option , income trusts , as they returned great yields & allowed us to fund our retirement without any government assistance.

You stuck your nose into the free markets & killed the most valuable & worthwhile option that has ever been available to retirees.

You forced us into the Meow Mix lines at Walmart.

Now here we go again as you shift our wealth from our pockets into those of the Manulifes of Canada.

It becomes kiss kiss , hug hug as you give us the kiss-off & wrap your gov`t laden arms around the big boys.

Thanks Jim for nuthin.

My wife says to tell you to "get stuffed".

Your friends in Rodney.

Dr Mike & Mary Popovich

Mary P said...

I wonder what would have happened if Manulife had become an income trust??

Would there have been an Income Plus??

Mary Popovch

Anonymous said...

Income Trusts were the greatest invention since sliced bread. BB

Brent Fullard said...

Gee whiz:

"Insurance companies, business groups and the Alberta government praised Ottawa’s proposal for a Pooled Registered Pension Plan (PRPP) as a targeted response. One insurance firm, Sun Life, called it a “historic milestone” that could expand pension coverage to millions of Canadians."

Globe and Mail

Anonymous said...

I predict a very import future for PRPP. It'll be up against some real tough competition from real estate income trusts held by RSPs and TFSAs, but I predict that Flaherty will level the playing field.

On Valentine's Oh-13, Flaherty will hold a press conference to announce a new arrangement.

He'll say "If Tax Free Savings Accounts do not pay their fair share, foreign corporations will have to pay more. So tonight I am putting a different 'F' into the TFSA."

Hint: re-check the date of the announcement.

Anonymous said...

Thank you for confirming the exact meaning of who will benefit from this b.s. - as I suspected Insurance arses.

It figures the Canadian Labour Congress supports this ... Does their "leader" also play golf with Dalton McGuinty, every PC and all insurance industry types in this country?
Once this goes through it will ensure any Canadian who has to contribute will never be able to retire with dignity.
Bad enough so many companies have switched from DB's to insurance co DC's. Have fun with the Manulife"financial education specialist" managing your account. You will have to clarify with Manulie exactly what one is, how they were trained and how they get paid. Canadians will have 2 GICs and about 4 mutual funds to pick from.

Here is a thought - why don't all the politicians have their pensions switched over to Income Plus and insurance co. profits from administering that plan go back to CRA to the tax paying public? If these arse wipe politicians can dish out this crap they should be able to take it!

Dr Mike said...

Here is a thought - why don't all the politicians have their pensions switched over to Income Plus and insurance co. profits from administering that plan go back to CRA to the tax paying public? If these arse wipe politicians can dish out this crap they should be able to take it!

December 17, 2010 8:16 AM by Anonymous

Well said---now that would be the true test of Flaherty`s plan if he & the rest of the cabinet would voluntarily place themselves under it`s umbrella.

Now that ain`t a gonna happen which shows you exactly how wonderful it really is.

Dr Mike Popovich

Brent Fullard said...


Actually here's the reaction of the Canadians Labour Congress as reported in the Globe. Ken Georgetti clearly got it right:

"Canadian Labour Congress president Ken Georgetti praised Mr. Flaherty in June for supporting CPP improvements. Now he’s furious.

“Voluntary systems don’t work,” he said. “I guess a couple of lunches with the insurance and the banking industry have more effect on this government than Canadians’ public opinion. It’s just absolutely unacceptable in our view.”"

Anonymous said...

Alert Alert

All MP's , Public employees, former PM's and MP's are converting into this new PRPP plan.

Ya right, this is for the sheep,
the sacrificed Canadian, who is still marketed with the CHIP programs

Somebody said Run !!