Whether one-time bailouts or multiple hikes in pension contribution rates, tax dollars are still used to top up public sector plans, and this is because plan members are guaranteed a certain level of benefits in retirement. And that's the real problem: taxpayers, most of whom do not have a registered defined benefit plan, end up paying for pension promises to government employees' unions.
Canadians routinely hear about alleged growing divides in Canadian society. But here is one rift that often goes unmentioned: the divide between the pension benefits of public sector employees and everyone else. Such inequality incurs real costs, where ordinary taxpayers pay ever more for above-market, guaranteed pension benefits that ever fewer in the private sector possess.