Pension giants add leverage as 30-year-old Canadian model flounders

摘要

In the late 1980s, the Ontario government set up a task force to tackle what it saw as a ticking financial time bomb. After decades of under-funding, it was worried that the pensions of teachers and other public servants might one day place an insurmountable burden on state finances. The pay-as-you-go model, with workers contributing just 1% of their salaries and the state filling any shortfalls, was seen as unsustainable.