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Provincial Retirement Pension “Plan B”

This paper provides a macro-economic impact assessment of proposed provincial pension plans in Ontario, Manitoba and Prince Edward Island.

While governments focus on the positive effects of greater retirement savings, there is next to no mention of the offsetting costs on the economy from extracting more payroll premiums to pay for those benefits. Provincial pension plans in Ontario, Manitoba and Prince Edward Island could cost up to 171,000 person-years of employment in the short run, and a loss of 0.7% in aggregate wage levels in the long run.