The Canada Pension Plan, on new terrain

Around this time a year ago, we argued that provincial and federal governments in 2016 chose to transform rather than merely expand the Canada Pension Plan. With the publication of the financial sustainability regulations for the enhanced CPP benefit, the nature of that transformation has become clearer.

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Pre-Funded Pensions and Social Solidarity

When finance ministers agreed to expand the Canada Pension Plan in June 2016, they didn’t give Canadians a simple expansion of the Canada Pension Plan. In important respects, they created a new and different social security benefit. And that’s the way governments view it.

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Warning to Finance Ministers: leaving some workers out of an expanded CPP could boost precarious employment

Despite having had few good things to say about CPP expansion in the past, Business Council of Canada CEO John Manley and Chamber of Commerce CEO Perrin Beatty now grudgingly endorse a modest, targeted enhancement of the Canada Pension Plan.  But could a benefit enhancement targeted at modest income-earners lead to more temporary, part-time, and low-wage employment?

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Why Benefits for Low-Income Seniors Shouldn’t Stand in the Way of CPP Expansion

Dean Connor, President and CEO of Sun Life Financial, received $7.7 million in compensation in 2014, double his payout from 4 years earlier, and enough to place him 50th on the list of top-paid CEOs in Canada.

So it took a certain amount of chutzpa for Mr. Connor to tell the similarly well-heeled audience of the Economic Club of Canada, as he did in November last year, that the 60% of employed Canadians earning under $50,000 a year don’t need, and shouldn’t get, an improvement in Canada Pension Plan benefits. According to Mr. Connor, low and modest income earners need all the take-home pay they can get, and in any case, they’re already saving enough for retirement.

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Christmas tales from the CFIB

Can a myth be “technically true,” and still be a myth?  Can peer-reviewed academic research findings be dismissed as mythology, when no opposing evidence or argumentation is presented?  These, and other holiday head-scratchers, courtesy of the Canadian Federation of Independent Business’ “Myths versus Reality” on the Canada Pension Plan.

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