Solution to deficit pensions - Paradigm Shift

While this solution is intended to suggest an alternative or new paradigm for government retirement pensions on Prince Edward Island, I'm sure it could be used just about anywhere. First a bit of background preamble.

The Situation
In the  news PEI will deficit $436 million each YEAR
on the current government pension plan. The government employees will now add in $8 million a year from their wages and PEI Tax payers will add in 23 million a year or a total of $31 million towards the $436 million yearly shortfall, now my math suggests that putting 7% of what is needed towards a shortfall puts us still short $405 million a YEAR or in terms of population a shortfall of $2,892/year per Islander...now I'm not an ostrich so I don't put my head in the sand, so don't blame me when I point out the obvious - government pensions as they stand now are Not Sustainable. To put it bluntly, the government either this one or the next one will have to tell government employees there is no more pensions...there is no more money. The facts really speak for themselves, I'm not anti-government pensions. But don't despair there is a solution.
 
Now this hasn't been researched...it is all just off the top of head but here is where I see PEI sitting right now. 

PEI Strengths
 ・ Community based society. Let's build on that strength.
 ・ Birth place of Canada – we are trend setters even if we don't like change. So maybe we should capitalize on this and create the first sustainable living model in PEI. 
・ Social democratic government – or at least that is what I learned in school years ago.  This is a great place to be, theoretically it means we balance the social well being of citizens with the democratic process.  Maybe we could even consider the economy working with the environment.
 ・ We are small so therefore should be flexible/adaptable.
 ・ The government of PEI owns land throughout the province.
 ・ PEI is building, albeit slowly, renewable energy.

 PEI Weaknesses 
・ The mindset that pensions represent cash or money. Think for a minute what if  one there wasn't any cash to pay pensions (very real possibility) or two money wasn't worth anything (other countries have experienced this first hand). Keep that thought.
 ・ The wealthy want more than there share and this isn't just PEI. 
 ・ Housing is the biggest expense for Islanders 

Opportunities 
・We have the opportunity to build on our status as the birthplace of  Canada so let's create a sustainable living model for the rest of the country to
follow. 
・Mini-communities are cropping up all over the world – sustainable housing with renewable energy, community gardens etc. 
・ There are opportunities to generate new businesses for a healthy economy and ecology.

Threats 
・ The world economy is collapsing or for those that want a rosier picture is having some difficulty right now.
 ・ The retirement pensions are grossly underfunded.

Solution
Go back to the question of 'what if there was no money?' or 'what if money was worthless?'  Now consider one of the most basic needs is shelter.  What if your retirement was a guaranteed place to live rent free? 
 
Picture this: 
A mini-community where 2 bedroom passive solar/ICF 500 square foot homes were built in a community setting that were powered/heated by renewable energy, cars that were powered by electricity generated on site, and that there was a community garden, maybe even a hen house to supply eggs/food for the community.  And since I propose this as a retirement plan for government employees in place of money, a health care provider dedicated to the community to monitor  medications etc. 

On retirement an employee could take up residence free of charge for the remainder of their lives, open housing would be rented to off-set upkeep items.  Cars would be community property and the community gardens would be also. Moving people out of the city centres would also alleviate other problems such as over development, water and sewer problems, importation of energy, and health care
costs. 

I would suggest taking the $8 million/year from employees and $23 million from PEI Tax payers would more than cover this type of set up for 4,400 retirees or $7,045/year each...a mortgage on a 500 square foot house with infrastructure could be done with $587/month with additional funding from the actual fund  itself.

This is just one idea of potentially many, if we just think a little different, since we are moving into a new era one that will require us to adapt and change to remain sustainable.