PSP Pension profile Average pension paid - $24,506
PSP Pension rates
PSP Pension financials Average new pension paid - $39,312
Average Canadian CPP pension - $6,000
Since any major changes in pension plan design for the public sector will be made for future employees, there are millions of public sector employees under the current pension regime.
As serious effort needs to evaluate what is a fair contribution by employees towards these plans.
The CD Howe estimates that currently these plans cost 34% of salary. The current contributions by employees fall far short. It is possible that the CD Howe estimate is too generous.
The head of the federal public sector pension board recently commented
As I observed in the 2010 Annual Report, the first 10 years of PSP Investments were challenging times. According to the Wall Street Journal, the first decade of the 21st century turned out to be the worst ever for US stocks based on records going back to the 1830s. Total returns for the period 2000-2009 amounted to negative 0.5%. That compared with a high of 18% in the 1950s and was even lower than the negative 0.2% return for the 1930s Depression era.