The Liberals want more people to have pension plans and they think they’ve found an inexpensive way to make that happen.
Liberal Leader Stephen McNeil promised Tuesday to create a public pension fund if elected. Independent business would have the choice to allow employees to opt into a defined contribution plan.
“It wouldn’t cost the province anything. It would be paid for by the contributors,” McNeil said.
The province would set up the framework for the plan but would not guarantee it. So in the event of a shortfall taxpayers would not be on the hook, such as is the case with teachers and other government employees.
McNeil said having businesses across the province join into one plan would lower costs and allow investments to be spread out to reduce risk.
“It allows small business who do not have the wherewithal to put together the structure that is required around a pension plan for there employees, it gives them a framework that they can be part of,” McNeil said.