Evelyn Jacks, president of Winnipeg-based The Knowledge Bureau, also questioned the capacity of small business owners and employees to pay much more in CPP payroll taxes. The average annual tax refund is $1,500 — representing an overpayment of taxes withheld at source by employers — and might be more manageable to reinvest that $125/month into the CPP or some other forced savings plan, Ms. Jacks said.
Mercer’s and CARP are more positive about Mr. Flaherty’s other suggestions, which incorporate bits of several reform proposals in circulation, said Mr. Forestell. “It’s a bit of everybody’s and close to what we submitted in our brief. We’re pretty pleased they seem to have found a good balance.”
Ms. Eng said CARP finds Mr. Flaherty’s proposals are “a major step forward – the most important advance being that the two key Finance Ministers have now acknowledged that the current retirement income system is inadequate and government has a role to play in fixing it.”
Financial Post with files from Canwest News Service
Keywords: pension reform, CPP
