Description: On Tuesday, January 13, the Quebec government announced that the provincial pension fund, the Caisse de dépôt et placement du Québec, would make a $5 billion investment in the province’s transportation network. The pension fund will provide both the financing and the management for these assets. This mixing of political and pension goals may have big impacts though. What type of returns can be expected from these public investments and how will this impact the pensions of those who rely on the Caisse for their retirement income?
Source: Globe Advisor.com
Date: January 14, 2015
1) The article raised the point that the Quebec government is heavily indebted so relying on the pension fund for public infrastructure does offer resources to it. What is your opinion of the risks and rewards of this strategy?
2) What are some of the accounting issues that might emerge for both the government and the Caisse?
3) If you were a pensioner relying on the Caisse for your retirement income, what would be your view of the arrangement?