Tuesday June 21, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Tuesday June 21, 2016 CPP reform to dominate finance ministers meeting in Vancouver The federal finance minister says revamping the Canada Pension Plan is critical to ensuring that future generations of Canadians can retire in dignity, no matter the state of their finances. Bill Morneau joined his provincial and territorial counterparts in Vancouver today to discuss reforming the national pension program over concerns that some Canadians will struggle financially come retirement. The pressure is on to reach a deal as Ontario's plans to develop its own pension program are well on their way, though the province's finance minister says his preference would be for a national plan. Ontario wants a deal now, but Saskatchewan and B.C. have suggested the economic conditions aren't right for a change that's likely to lead to an increase in the premiums that come off workers' paycheques. That premium hike is why some critics of the expansion call it a payroll tax, a common refrain from the Opposition Conservatives who oppose an across-the-board expansion of the program. The ministers could agree to that or to more selectively target those Canadian workers who are the least likely to save. Federal research has suggested that group tends to be under the age of 30, earns between $55,000 and $75,000 (although some estimates are higher), and either doesn't save enough or lacks access to a workplace pension plan. The federal and provincial governments are looking at a possible increase in the $55,000 cap on annual maximum pensionable earnings, which would result in both higher premiums and increased pension benefits. Resolving the issue could be harder than changing the Constitution. A change to the CPP requires provinces representing two-thirds of the population; a constitutional amendment needs seven provinces representing at least half. (Source: CBC News)Êhttp://www.cbc.ca/news/business/finance-minister-cpp-1

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday June 21, 2016

CPP reform to dominate finance ministers meeting in Vancouver

The federal finance minister says revamping the Canada Pension Plan is critical to ensuring that future generations of Canadians can retire in dignity, no matter the state of their finances.

Thursday October 15, 2015Bill Morneau joined his provincial and territorial counterparts in Vancouver today to discuss reforming the national pension program over concerns that some Canadians will struggle financially come retirement.

The pressure is on to reach a deal as Ontario’s plans to develop its own pension program are well on their way, though the province’s finance minister says his preference would be for a national plan.

Ontario wants a deal now, but Saskatchewan and B.C. have suggested the economic conditions aren’t right for a change that’s likely to lead to an increase in the premiums that come off workers’ paycheques.

That premium hike is why some critics of the expansion call it a payroll tax, a common refrain from the Opposition Conservatives who oppose an across-the-board expansion of the program.

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator - Tuesday June 15, 2010 Planning for the Future For the past two years, the federal government and provincial finance ministers have been looking at what to do to help Canadians better prepare for retirement. When the bottom fell out of the stock market in the financial crisis that swept the world in 2008, company pensions and registered retirement savings plans were hit hard. It was feared that some pension plans would not be able to meet their obligations to current and future retirees Ñ and that some retirees would have no pension at all if the companies they worked for went bankrupt. People who had to rely on RRSP savings faced the prospect of having to work several years longer than planned to make up for their losses. While markets have recovered much of what they gave up and many plans that were at risk are solvent again, Canadians are still worried about what their retirements will look like. An Ipsos Reid poll commissioned for the Canadian Institute of Actuaries suggests 42 per cent of Canadians over the age of 45 feel they are not financially prepared to live comfortably after they leave the workforce. Seventy-two per cent said they were concerned about maintaining a reasonable standard of living in retirement. A similar poll done by Ipsos Reid in November 2006 for BMO Financial Group suggested that 70 per cent of Canadians don't feel they're on track with their retirement savings Ñ or don't know if they're on track.Ê(Source: CBC News)Êhttp://www.cbc.ca/news/business/what-s-being-discussed-1.955300 Canada, retirement, CPP, RRSP, consumerism, consumers, planning, savings, advice, Best Buy, electronics

June 15, 2010

The ministers could agree to that or to more selectively target those Canadian workers who are the least likely to save.

Federal research has suggested that group tends to be under the age of 30, earns between $55,000 and $75,000 (although some estimates are higher), and either doesn’t save enough or lacks access to a workplace pension plan.

The federal and provincial governments are looking at a possible increase in the $55,000 cap on annual maximum pensionable earnings, which would result in both higher premiums and increased pension benefits.

Resolving the issue could be harder than changing the Constitution. A change to the CPP requires provinces representing two-thirds of the population; a constitutional amendment needs seven provinces representing at least half. (Source: CBC News)

Published in the Ottawa Citizen

Published in the Ottawa Citizen