More delays won’t fix Canada’s retirement security crisis

May 26, 2015

Finance Minister Joe Oliver’s announcement today that he will “consult” Canadians on voluntary increased Canadian Pension Plan contributions shows the government is more worried about appearances than actually tackling Canada’s retirement security crisis, says Canada’s largest labour body. 

“We know through polling that an overwhelming majority of Canadians already support expanding the CPP through increased mandatory contributions,” said CLC president Hassan Yussuff.
“Why stall with more consultations when there is already so much consensus around the right solution for Canada’s retirement crisis?” he asked.

The CLC has long held that a voluntary scheme won’t work.

“The CPP is so successful precisely because contributions are mandatory, not voluntary,” said Yussuff. 

“Voluntary contributions would be more complicated and costly to administer, and, would leave workers behind when employers choose not to match increases,” he added.

The rate for CPP contributions was originally set up assuming that most workers would be able to supplement CPP savings with workplace pension plans. But today, two in three working Canadians – that’s 11 million workers – have no workplace pension plan.

“After a lifetime of hard work, nobody should have to retire in poverty, and unless we act now, we are going to see more and more seniors facing that future,” said Yussuff.
“This government needs to listen to what Canadians are already saying and begin a phased-in doubling of the CPP,” he added.

[[{“fid”:”416″,”view_mode”:”default”,”fields”:{“format”:”default”},”type”:”media”,”link_text”:”Worried about your retirement?”,”attributes”:{“class”:”file media-element file-default”}}]]

 

Related Articles

Working families have a lot at stake this election

By Hassan Yussuff You can be forgiven if you’ve avoided thinking about the upcoming federal election all summer, but Labour Day is here. That means it’s time to return to the fall routine and start thinking about how you are going to cast your ballot. You may have seen politicians working the barbecue circuit, vying for the support of workers…
Read More

Labour Day 2019: Unions seek to put fairness on the ballot

This Labour Day, Canada’s unions are launching a campaign to make fairness a ballot box question in the October federal election. That means unions will be calling on Canadian workers to vote for candidates who support universal pharmacare, retirement security, climate action, equity and inclusion, and good jobs for everyone. “Over the last four years, our work has resulted in…
Read More

National strike in Brazil

Canadian workers stand in solidarity with Brazilian trade unions protesting government pension policies that weaken workers’ rights. On Friday, June 14, Brazilian trade union national centres, grassroots unions, students, and popular and social movements are going on a national general strike to protest government neoliberal reforms to the Brazilian social security system. These reforms attack poorer workers while maintaining the…
Read More