MacLean’s – October 21, 2010
Public pensions for the private sector: NDP government announced it will provide a pension plan for all daycare staff in the province of Manitoba
By Peter Shawn Taylor

Pensions and toddlers don’t often go together. They do now in Manitoba. Last week, the NDP government announced it will provide a pension plan for all daycare staff in the province. An estimated 7,000 workers will qualify, including those who offer child care out of their home. It’s proving a controversial move.

The new $6.6-million-a-year policy creates a defined-contribution pension plan for staff working at privately run non-profit child care centres. Payments will be made to retroactively recognize up to 10 years service. For home-based daycares, the government will contribute up to $1,700 a year to the owner’s RRSP. All this is in addition to increases in provincial wage subsidies over the past decade that have pushed starting salaries for daycare workers in the province to $32,000.

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