A strong wind advisory has been issued for the Retirement Orientation Council (COR). Within this body, responsible for informing public decision-makers and the population, disagreements have arisen between its president, economist Gilbert Cette, and several members representing unions. The dispute revolves around a new methodology project to construct the next annual report, scheduled for release in June. This change in approach, to be presented on April 4, is seen as turning away from the principles of independence and plurality on which COR is based, and is believed by several employee organizations to be preparing the ground for a painful reform.
The COR is an expertise center comprised of individuals with diverse backgrounds: parliamentarians, senior civil servants, researchers, employer and union activists, etc. Once a year, it releases a highly anticipated report that receives extensive commentary due to its objective of assessing the financial situation of our pay-as-you-go system for the next half-century. The quality of this document is universally praised, with some criticisms growing louder in recent years from specialists, political figures, and employer representatives. Some believe the COR reports are too complex and allow for conflicting views on the actual state of our pension system: some argue “there’s no immediate danger” while others assert “the system is headed for disaster.”
These criticisms stem from the fact that one of the institution’s missions is to provide a large amount of data to governments and citizens without making recommendations – as that is not within its purview. Motivated by a desire to provide extensive information, the COR had been constructing financial projections using three different accounting conventions, resulting in differing outcomes regarding deficit sizes and timeframes to address them. To simplify matters, it was decided to maintain one convention in the main body of the report and retain another in the annexes.
However, these decisions did not fully address all concerns, particularly when former COR president Pierre-Louis Bras was criticized by the government for contributing to confusion by stating that “retirement expenses are not spiraling out of control” at the beginning of 2023. This declaration, made as the government was initiating a reform to uphold the budgetary balances of our pay-as-you-go system, displeased officials. Shortly after, Mr. Bras was dismissed and Mr. Gilbert Cette took over as president in November 2023.
In conclusion, the COR is facing internal strife over proposed changes to its methodology and a perceived lack of clarity in its reports. The organization’s role in providing information without making recommendations has led to criticisms from various sectors who feel the reports are too complex and allow for conflicting interpretations. Former president Pierre-Louis Bras’ controversial statement on retirement expenses further exacerbated tensions with the government, leading to his dismissal. As the COR prepares to release its next annual report in June, the disagreement within the organization underscores the challenges of evaluating and ensuring the long-term financial stability of the pension system.
