This is good news for Canadians who are having a tough time saving for retirement. Canada’s finance ministers are reopening the debate on reforms to the Canada Pension Plan with a goal to increase benefits for older Canadians.
CARP – A New Vision of Aging – has been a strong lobbying force for CPP expansion because it has a proven track record as a low-cost, well-run and fully funded public program.
Susan Eng is the Vice-President of Advocacy for CARP. She tells Jane Brown of Zoomer Media News, the topic of CPP expansion was shelved until politics started playing into it.
“In December 2010, the two holdouts to allow any changes to CPP were Alberta and Quebec. And because of the amending formula for CPP, those two together were able to veto any kind of consensus moving forward on CPP. With Quebec moving forward, it means that they no longer have the veto. And the provinces that need to see an improvement on CPP can go ahead. And that breakthrough came in the budget process in Quebec, and no one even noticed.”
A policy paper on CPP reform prepared by federal and provincial public servants will be presented to the ministers during their annual gathering this month. Among the options to be laid out is a what’s called a “three ten” plan. Under that scenario, the year’s maximum pensionable earnings for CPP would increase by $10,000 to $60,000, the maximum benefit would increase by 10 percentage points to 35-percent, and the changes would be phased in over 10 years.
Click below to listen to Jane Brown’s full interview with CARP’s Susan Eng: