Government-created savings plans drive up costs for public pension benefits

'A popular savings program created by the federal Conservatives is exacerbating the fiscal pressure on public pension benefits — even as the government prepares to scale back benefits.

Prime Minister Stephen Harper set up tax-free savings accounts or TFSAs in 2008 to encourage savings, allowing adults to set aside up to $5,000 a year to grow tax-free.

The accounts have surged in popularity, and in the last election, Harper pledged to double the maximum annual amount, once the budget is balanced...'

Read more: http://www.canadianbusiness.com/article/71673--government-created-savings-plans-drive-up-costs-for-public-pension-benefits