Archived - Harper Government Consults Canadians on Voluntary Supplement to the Canada Pension Plan
July 13, 2015 – Ottawa, Ontario – Department of Finance
Finance Minister Joe Oliver today announced that the Government of Canada will consult with individuals, financial sector and retirement income experts, and stakeholders on options for a voluntary supplement to the Canada Pension Plan (CPP).
At the same time, Minister Oliver made clear that the Government will not impose a mandatory CPP premium increase on Canadians. Payroll tax hikes on workers and employers would kill jobs and be particularly damaging during a time of instability in the global economy. Such a tax hike would hit small business owners especially hard. It would also mean a serious cut in take-home pay for millions of hard-working Canadians. Rather, the Government will continue with its plan for low taxes, economic growth, a balanced budget and benefits provided directly to families.
The Harper Government is making it easier to save more for retirement:
- Introducing the Tax-Free Savings Account (TFSA), a way for Canadians to save tax-free for the priorities that matter to them. Economic Action Plan 2015 nearly doubled the TFSA annual contribution limit to $10,000, effective for 2015 and subsequent years.
- Increasing benefits through the Old Age Security (OAS) program’s Guaranteed Income Supplement (GIS) for Canada’s most vulnerable seniors. This investment of approximately $300 million each year improves the well-being of approximately 680,000 seniors across Canada.
- Implementing a framework for low-cost and large-scale Pooled Registered Pension Plans (PRPPs) for the more than 60 per cent of Canadians who do not have access to a private workplace pension plan.
- Canadians can be confident that the CPP will be there for them when they need it. The 26th Actuarial Report on the Canada Pension Plan has confirmed that it is sustainable for at least the next 75 years. Together, the CPP and OAS programs provided approximately $79 billion in 2013-14.
- Canada’s retirement income system is acknowledged to be among the world’s best, by groups like the OECD, in preventing poverty among seniors and ensuring appropriate income in retirement. According to a recent retirement study by McKinsey & Company, 83% of Canadians are on track for a comfortable retirement.
- The Canadian Federation of Independent Business surveyed its Ontario members in response to the Ontario Government’s plan to create its own pension plan. 69% of employers indicated they would have to freeze or cut salaries to afford payroll tax hikes. 53% said they would have to fire workers. 13% said they would have to close altogether.
Melissa Lantsman
Director of Communications
Office of the Minister of Finance
613-369-5696
David Barnabe
Media Relations
Department of Finance
613-369-4000
