"Pension gap growing between rich and poor"
http://www.financialpost.com/Story.html?id=125304Summary
The continuance of growing inequality employment earnings is becoming a threat, which created a bigger gap of pension value between the rich and the poor. This is also an issue in the way of equalizing the impact of the Canada and Quebec Pension Plans. Nowadays, Canadians are better prepared to get retired compared to citizens back then, and that is the main cause of the growing gap (of the pension coverage) between the rich and the poor. It was evident that 20% of families with the high earnings have increased ($4,200 or 6.7 times greater) the sum of contributions to pension plans and Registered Retirement Savings Plans since the mid1980s; however, at the same time, the contributions of the 20% with the lowest incomes have declined. By 2004, highest income families' contribution had increased to at least $7,700 or 9.2 times greater. Andrew Jackson recommends to double the CPP benefits because it would giver everyone who are participating in the workforce a much higher amount of basic benefits. This also means that there will be a reduction in the cost of funding those employer plans. The National Union of Public and Gerneral Employees have proposed to force employers who do not provide a pension plan to pay extra CPP fees to finance CPP coverage for their workers.
Relation to the chapter
As we have learned that in this chapter, there is something called income distribution, and pension plans are also included in that category. I think this article relates to the chapter is how it states about the issues dealing with pension programmes. There is an unequal balance between the rich and the poor, and that they are trying to balance it out, so that it can let all people have an equal chance to participate and contribute to the free market system. This involvement with the government allows people who are jobless or retired have the equal opportunity to contribute to the economy of Canada.
Personal Reflection
In my opinion, I think the gap of pension plan between the rich and the poor should be solved as soon as possible. One, i think its a matter of fairness. I do not think it is really fair if this issue will cause reduction retirement coverage on other people like the elderly. I agree with National Union of Public and General Employees' proposal that employers should be force to pay extra CPP premium to support a better pension plan for their workers. This is a very aggressive way of solving the problem, but most importantly i think it is effective.
