[pp.int.general] Pensions - the 'canadian system'

[Jouni Snellman]

Is anybody following the Russian situation? Apparently there is a new
antipiracy law proposal which has already been signed by president Vladimir
Putin. Source: rosbalt.ru

On Fri, Jul 26, 2013 at 1:53 PM, Zbigniew Łukasiak <zzbbyy at gmail.com> wrote:

> In Poland one of the other parties proposes a system where everyone
> pays the same fee and then gets the same pension - they call it 'the
> Canadian system' (any Canadians to comment on that?) .  In a way this
> looks very similar to Basic Income and I have similar arguments for
> it.  When we have BI then all this would not be needed - but maybe we
> can adopt this as a kind of intermediate goal?
>
> The state should deliver universal benefits - that are the same for
> every citizen - wherever we want diversification we can let private
> companies do that - they are pretty good at that.
>
> I can see two arguments for having the state force citizens to pay
> pension contributions (be it really called pension contribution or be
> it just a part of other taxes):
>
> - the rational argument is that if we don't force people to save for
> retirement then they will not save and the state will have to take
> care of them anyway (because of humanitarian reasons or because
> otherwise they would steal and stuff) - in that case the state does
> not need to pay pensions above the social minimum - i.e. the same for
> everyone
>
> - the humanitarian/solidarity argument is also better met by a system
> that delivers the same benefits to everyone then by one that
> discriminates
>
> Of course the obligatory contributions should not be (much) higher
> then what is needed to meet the social minimum in pensions.  All the
> rest of the salaries people could save in private funds.  I believe
> that this private part of the pensions funds would be the most
> efficient one - market is pretty good at that - but on the the other
> it can not be the only part of the solution.  There are many pensions
> schemas that mix the state and the private parts - and this is
> probably the worst of all - we need to do both but demarcated in a
> clear way.
>
>
> --
> Zbigniew Lukasiak
> http://brudnopis.blogspot.com/
> http://perlalchemy.blogspot.com/
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