WELCOME

I was surfing the Internet one day and I noticed that Saskatchewan had unlocked their citizens locked in pensions 100% when they were transferred from a locked in retirement account ((L.I.R.A.)) into a Fund where they would be able to start collecting from . (( we will call the unlocked fund a registered retirement income fund R.R.I.F. )) The name varies a little bit Province to Province. I was surfing a bit more and I found that Manitoba had Unlocked 50% of the locked in funds in their province for their people. (( They are currently being lobbied to unlock the remaining 50% )) I then begin to think (( and that is hard to do sometimes )) Ontario being a progressive Province. Why is Ontario not unlocking these funds for their people. Considering that this is very unjust and cruel legislation keeping these funds Locked in when a person reaches Retirement age. Many of us were lead to belive when we contributed to the Defined Contribution Fund and reached the age of retirement that we could draw on our funds at will. Not be controlled by the Government and only allowed to remove basically the interest on the funds from 2.5% to 11% depending how good the fund was doing. This our OWN MONEY not Government Money. It is not OAS or CPP.

Monday, October 8, 2007

Why will the Liberals Not unlock Our pensions

Hi All This is a note to a question I was asked. ( Why wont the Liberals unlock our personal pensions? )
My Reply
It Just doesn't make sense and I cant understand their thoughts because of these things.
A person that has a LIRF can invest their money and lose it all . ( they have no problem with that )
They allow the pension to be unlocked fully and transferred in to a RRIF If the pension holder dies and it goes to the spouse. ( I have no problem unlocking for the spouse)
The Part I cant understand is if they can do that for one. Why cant they do it for two ? ( to me this doesn't make seance as the Plan Holder more the likely has more knowledge of the workings of the funds.
People like Jack & Malcolm & Gordon & CARP & Senior organizations endorse unlocking these pensions 100%.
Financle institutions say it would be better for them. ( Less paper work )
It would be better for the economy of Ontario.
Saskatchewan did it 5 years ago and Other provinces are following.
The people have been Asking for this to be done.
Greg Sorbara The Ontario Finance Minister Said "it is not to protect the people".
Greg Sorbara said "it was to protect the contract with the Employer "
( This Contract is no longer a contract when the plan is moved to a LIRF or RRSP ( The employer is no longer involved )
Is it that McGuinty and Company want to have power over the people of this province.
If there really a logical reason that they want to keep these pensions locked in. I cant under stand it.
It would be sure nice if we could sit down face to face with the Liberals and let them logically explain why they refuse to unlock these pensions.
Regard Bill C
Posted by at

1 comment:

  1. WEBOctober 8, 2007 at 11:11 AM

    First I want to make it very clear that I fully support the unlocking of Pension Funds. Not just Locked In RRSPs but also those who are facing a forced life annuity income at age 65 when their DB pension comes up. Those with RRSPs don't have to take a life annuity - at 65 - nor should pensioners.

    Those fortunate enough to have their pension money transfered into a Locked In fund - easily see the cruel injustice of forcing a lifetime only payout from their fund while on their death or becoming a non-resident the funds suddenly become fully unlocked.

    But the question of the contract with the employer is a legitimate one. If you had left your assets in trust for an heir - with the provision of limited annual payout - so that they would have lifetime income - you would expect that trust to be honoured - despite your death.

    Similarly the money in your plan - now called yours - was placed there by both you and your employer - for your lifetime income. That is how pension plan regulators understand the situation.

    I think it is time to focus on the fact that lifetime retirement planning is often not best served by the equivalent of a life annuity (which is what the current rules enforce). Just as RRSP holders have the right to manage their own future - so should pensioners.

    The idea that DC plans consist of only employee money and DB plans consist of only employer money is inaccurate - both employers contributed to both and in many cases employees have contributed to DB plans.

    It is time to liberate pensioners.

    ReplyDelete

Subscribe to: Post Comments (Atom)