Benefits Of A Pension Plan - 1810 Words

their pension plan will be there for them when they retire (5). In terms of reform the following factors can help to make DB plans more attractive again: Risk shared plan where the cost is explicitly shared between participants and sponsors; Target benefit plan (TBP) where accrued benefits can be increased or decreased according to experience, and Plans where indexation of pensions is conditional (Bakvis and Skogstad 2008, 144). The second tier consists of the CPP and QPP, which is an earnings-related program for the employed and self-employed that provides retirement, disability, and survivor benefits as well as benefits for children of deceased and disabled contributors (Pierlot 2008, 3). The plans provide a retirement benefit of 25†¦show more content†¦This matter is not discussed in this paper. In general any reform to the CPP is meant to apply to both the QPP and CPP. The context in which the CPP/QPP operates refers to as joint-decision federalism; although made for the purpose of mutual negotiation, it is harder to reach agreements over important matters in the CPP (Bakvis and Skogstad 2008, 143). The federal government and the provinces jointly administer the CPP whereas the OAS works within the domain of only federal jurisdiction (Beland and Myles 2012, S78). First, any changes to the CPP must have the consent of two-thirds of the provinces having two-thirds of the population, which implies that any four provinces can, in concert, block a change to the CPP (Dyck 1986, 55). Second, the federal government has the authority to block any change that it disapproves (55). These rules create a system where multiple vetoes can overpower changes to the CPP. This makes it difficult to reach a common consensus on urgent issues and reform, since there is a diverse range of governments with different ideologies and viewpoints (Bakvis and Skogstad 2008, 14 4). The requirement that assenting provinces represent two-thirds of the population gives a special veto to the larger provinces. Ontario has a veto in its own right, and will continue to retain that power as long as more than one-third of the population continues to reside within its borders (Dyck 1986, 55) In addition; Quebec is included in