Ontario’s Power Trip: Retirement deficit coming to your hydro bill

Ontario Power Generation tops the worst funded pension fund list and Hydro One isn’t far behind. Guess who is going to pay for them

Ontario’s Power Trip: Retirement deficit coming to your hydro bill | FP Comment | Financial Post:

As noted in a recent Barry Critchley article in the Financial Post, DBRS, the Canadian bond rating agency recently released a list of the top 20 “Worst and Best” funded Canadian Pension Plans and Ontario Power Generation (OPG) topped the worst list with a deficit of $3.3-billion) Pension fund deficits have fallen into ‘danger zone’ for first time in decade, DBRS warns – July 4). Coming in at 8th spot was Hydro One Inc. with a deficit of $1.5-billion."
In total the two had a funding deficit of $4.8-billion and with a combined full time work force at the end of 2012 of 16,651 employees that equates to a liability of $288,000 for each employee. Over 35 years each employee would be obligated to contribute an additional $8,200 annually in order to ensure those retirement benefits are retained at their current levels if they were private sector companies—but they are not.

Read more »
Article any source