Path: utzoo!ncc!alberta!watmath!watdragon!hwarkentyne
From: hwarkentyne@watdragon.waterloo.edu (Kenneth Warkentyne)
Newsgroups: can.general
Subject: Re: RRSP unfairness
Message-ID: <5464@watdragon.waterloo.edu>
Date: 2 Mar 88 19:25:38 GMT
Reply-To: hwarkentyne@watdragon.waterloo.edu (Kenneth Warkentyne)
Distribution: can
Organization: U. of Waterloo, Ontario
Lines: 21
References:

In article <15561@onfcanim.UUCP> dave@onfcanim.UUCP (Dave Martindale) writes:
=[RRSP rules are] still not fair.
=Under the current rules, if I contribute $2000 to the pension plan I
=can put another $1500 into an RRSP.  That plus the $2000 my employer
=contributed makes $5500, $2000 short of the $7500 I could have
=stashed away without the company plan.  Is there any rationale for
=this inequality?
=
=And some of us have no choice about contributing to the "company" pension
=plan - we have to belong, and the level of contributions is fixed.
=(My "company" is the federal government.)

I think this comparison is somewhat inaccurate.  If I put $7,500 into
an RRSP, when I retire I get $7,500 plus however much that sum earned
as an investment.  When Mr. Martindale retires, he will get a retirement
income based on his salary that is indexed to inflation.  In most
cases (especially if you work for the government) the total benefits of
this package are better than what he would get if he withdrew from the
pension plan and contributed his money to an RRSP.

Ken Warkentyne