I wasn’t planning on writing every week about the ORPP. But a lot happened last week and many of my readers have come to rely on my commentary to help them frame their thinking about the ORPP independently from the ‘sales pitch’ others are sending them.
I want to write about three events:
1. Ontario’s January 26, 2016 Technical Bulletin on The Ontario Retirement Pension Plan.
2. Associate Minister of Finance Mitzie Hunter’s speech to the Independent Actuaries Network on Tuesday night after the Technical Bulletin was released.
3. Keith Ambachtsheer’s presentation to the University of Windsor’s Odette School of Business on Friday January 29, 2016.
I want to take the moments above in reverse order and try to just hit the highlights. Here we go:
I don’t know Mr. Ambachtsheer personally, but anyone who has been in the defined benefit plan business for any amount of time surely knows who he is. If not, here is his bio.
Ambachtsheer’s presentation was titled ‘The Future of Pension Management: Integrating Design, Governance, and Investing’, which not coincidentally is the name of his recently published book. I haven’t read the book but I can tell you it is probably pretty good since the presentation exposed many of the ideas that have been rolling around in my head but that I haven’t written all in one place. The presentation was great – but rather than telling you everything he said, if you are interested you can get the book. Some things he said just might not be in the book so a quick summary:
I don’t know how politicians are supposed to spend their time, but I will give Associate Minister Hunter credit, she is out with the people of Ontario talking with them and listening to their concerns. I also give her credit to come out to speak to the Independent Actuaries Network likely knowing in advance we don’t sit back and listen to speakers – we debate them.
Here is what I took from the evening:
My only comment on this is to repeat my main thesis that we do not need to pay for another system to administer retirement savings – we need to leverage one of the systems for which we have already paid. As a taxpayer I prefer if individuals leverage the existing DC system that we have in place and to me the second best choice is leveraging the existing CPP system which for the moment is DB.
Here are the new details:
That is all I have for this round – stay tuned.