Harper says `major' changes coming to pension system

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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Stephen Harper says `major' changes coming to Canada's pension system: speech

DAVOS, Switzerland - Prime Minister Stephen Harper has signalled his government will bring forward ``major transformations'' to the country in the coming months - in areas such as the retirement pension system, immigration, science and technology investment and the energy sector.

Of those reforms, Harper said, getting a grip on slowing the rising costs of the country's pension system is particularly critical.

In the wake of Harper's speech, it now appears that the Conservative government could be poised to gradually change the Old Age Security system so that the age of eligibility is raised to 67 from 65.

``In the months to come, our government will undertake major transformations to position Canada for growth over the next generation,'' said Harper. The Conservative government will table a budget in the coming weeks that is expected to set the stage for years of deficit-slashing and government reform.

Harper said the country's aging population has become a backdrop for his concern about how to keep the country strong over the long term.

``If not addressed promptly, this has the capacity to undermine Canada's economic position and, for that matter, that of all western nations well beyond the current economic crises.''

Indeed, Harper said the country's demographics - an aging populating and a dwindling workforce - constitute ``a threat to the social programs and services that Canadians cherish.''

For that reason, he said his government will ``be taking measures in the coming months.''

Harper did not specify what those measures will be, but he said they are necessary - not just to bring the government's finances back to a balanced budget in the medium term, ``but also to ensure the sustainability of our social programs and fiscal position over the next generation.''

``We have already taken steps to limit the growth of our health care spending over that period,'' said Harper.

``We must do the same for our retirement income system.''

Harper said the centrepiece of the public pension system - the Canada Pension Plan - is fully funded, actuarially sound and does not need to be changed.

But he added: ``For those elements of the system that are not funded, we will make the changes necessary to ensure sustainability for the next generation while not affecting current recipients.''

So far, the government has come forward with a plan to create a private pooled pension system to encourage Canadians to prepare for their retirement.

Still, there are concerns that as baby boomers approach retirement, the cost to government of providing public pensions will skyrocket.

In December, the National Post reported that there was internal debate within the government about increasing the age of eligibility for the other major element of the public pension scheme - Old Age Security - from 65 to 67.

Internal government documents project the cost of the OAS system will climb from $36.5 billion in 2010 to $48 billion in 2015. By 2030 - when the number of seniors is expected to climb to 9.3 million from 4.7 million now - the cost of the program could reach $108 billion.

Among the other priorities where change is coming:

Energy
The Conservative government will make it a ``national priority'' to ensure the country has the ``capacity to export our energy products beyond the United States, and specifically to Asia.''

``In this regard, we will soon take action to ensure that major energy and mining projects are not subject to unnecessary regulatory delays - that is, delay merely for the sake of delay.''

Harper did not explain what he has planned, although he and Natural Resources Minister Joe Oliver have complained that foreign-backed ``radical'' opponents of the $5.5-billion Northern Gateway project have threatened to slow down hearings by the National Energy Board.

Immigration
The system faces ``significant reform,'' said Harper.

``We will ensure that, while we respect our humanitarian obligations and family reunification objectives, we make our economic and labour force needs the central goal of our immigration efforts in the future.''

Science
The government will continue to make ``key investments in science and technology'' that are necessary to sustain a ``modern competitive economy.''

``But we believe that Canada's less-than-optimal results for those investments is a significant problem for our country.''

In future, he said, there will be changes to rectify that problem.

Trade

Harper expects to complete negotiations on a Canada-European Union free-trade agreement this year.

Furthermore, he said, his government is committed to also completing negotiations for a free-trade deal with India by the end of 2013.

And Canada will begin talks to become a member of the Trans-Pacific Partnership while also pursuing opportunities to trade in the emerging market of Asia.

Harper arrived Wednesday at the World Economic Forum determined to tout Canada as a trading nation with a solid economic record and massive oil resources which are ready to be sold and shipped to customers worldwide.

Other members of cabinet who are attending the conference in the exclusive mountainside resort in the Swiss Alps are Finance Minister Jim Flaherty, Foreign Affairs Minister John Baird, International Trade Minister Ed Fast and Bank of Canada governor Mark Carney.

Harper issued a scathing criticism of countries in the developed world, which he suggested had forgotten about the importance of creating economic growth. ``Is it the case that, in the developed world, too many of us have in fact become complacent about our prosperity?'' Harper asked.

He suggested that developed countries had taken wealth ``as a given . . . assuming it is somehow the natural order of things.''

Stephen Harper says `major' changes coming to Canada's pension system: speech
 

Cliffy

Standing Member
Nov 19, 2008
44,850
192
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Nakusp, BC
Like Gordo, Harpo is talking through the hole in his head. He is taking about exporting jobs, not just resources. Harpo did the same thing and look what happened. He destroyed the logging industry by allowing the export of raw logs causing mills to shut down and put people out of work. And like Harpo, he blamed it on the environmentalists. The truth is something else but some people like the sound of farting better than the spoken word.
 

darkbeaver

the universe is electric
Jan 26, 2006
41,035
201
63
RR1 Distopia 666 Discordia
"Other members of cabinet who are attending the conference in the exclusive mountainside resort in the Swiss Alps are Finance Minister Jim Flaherty, Foreign Affairs Minister John Baird, International Trade Minister Ed Fast and Bank of Canada governor Mark Carney."

That's a list we'll see arrested or we'll pay with our lives.These spineless puss balls entertain the baby eating scum of the planet the very ones who perpetuate income inequality and cripple equitable wealth distribution. We would be wise to see them swing before they've murdered our sons and daughters in mad evil wars.
 

jjaycee98

Electoral Member
Jan 27, 2006
421
4
18
British Columbia
hehe I wonder what sort of effect that will have on employment. Old folks having to work an extra 2 years and all that.

Beats having to bring in a bunch of immigrants to fill jobs. Alot of Seniors are working at the lower paying jobs that no one else wants to take. Many work for a little more income, but many are just filling up time.

I have found thaa a lot of the people who are griping about Seniors continuing to work either do not want to do those jobs anyway, or have not taken the time and effort to prepare for the job they think they should have.

There should be some way to continue to pay for Seniors at 65, with a means test. Just as there is now a clawback at $60,000 of Income reported on Tax returns, there could be a maximum Income Level for those ages 65 and 66 that is at a lower figure-like $30,000?. That is how Child Tax benefit works now; according to family Income, so they already have the Tax program up & running.
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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I wonder if people will just take the hit and retire early anyway.

I don't really want to work longer than 60 if I could.
 

Cliffy

Standing Member
Nov 19, 2008
44,850
192
63
Nakusp, BC
I wonder if people will just take the hit and retire early anyway.

I don't really want to work longer than 60 if I could.
Best way to do that is buy some land and set it up for self sufficiency. Retire when it is payed off and live off your land. You could retire earlier than 60.
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
39,778
454
83
Best way to do that is buy some land and set it up for self sufficiency. Retire when it is payed off and live off your land. You could retire earlier than 60.

Don't have the money to invest. I could just live like a conservative and save every penny, but not enjoy life for 20 or so years.
 

JLM

Hall of Fame Member
Nov 27, 2008
75,301
547
113
Vernon, B.C.
hehe I wonder what sort of effect that will have on employment. Old folks having to work an extra 2 years and all that.

I guess there are many ways of dealing with the problem (many of which are against my philosophy) but something obviously has to give with many seniors going well into their 90s. One would be paying premiums while young and employed like C.P.P. another would be restricting qualification to those under a certain income. One thing for sure- some one is going to be pissed off.
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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Raising retirement age 'unacceptable': NDP

Officials noted that the cost of OAS is pegged to rise to $108 billion a year in 2030 from $36 billion in 2010. That's because the number of Canadians over 65 will rise to 9.3 million in 2030 from 4.7 million in 2010.

Treasury Board President Tony Clement — who has been leading a review of government spending with the aim of finding $4 billion to $8 billion in annual savings — muddied the waters later Thursday.

He insisted that the government is not looking to cut OAS costs.

"What we're not doing is there's about $200 billion of the federal government budget that relates to transfers to individuals, like Old Age Security or EI payments, or transfers to provinces for things like health care … We're not looking at those," Clement told reporters following a speech in Toronto.

"That leaves about $80 billion of direct programming that is part of the federal (spending) review."

The government has been contemplating changes to the retirement security system for years. One option could be to raise the age at which people can claim benefits.

NDP finance critic Peter Julian said it would be "completely unacceptable" to ask Canadians to work until 67 rather than 65 before qualifying for OAS — a change that remains purely speculative at this point.

"The announcement today, the ominous words, because we don't have any details yet, I think are a slap in the face to Canadian seniors," Julian said at a news conference in Ottawa.

The government might also try to shift some OAS recipients to the self-financing CPP system by creating new options for them.

Andrew Jackson, social and economic policy director for the Canadian Labour Congress, said the government might be considering partial de-indexing of OAS benefits, which are currently indexed to inflation. Or it might lower the income threshold at which the government begins clawing back benefits, currently about $50,000.

Any cuts to benefits will be controversial, since many older Canadians took a hit on their retirement savings during the recent financial market turmoil.

Plus, more and more companies are slashing pension benefits or turning to defined contribution agreements that favour corporations — again weakening the retirement savings of Canadians and making them more dependent on government.

Pension system to see 'major' changes to cut costs - Politics - CBC News


Don't have the money to invest. I could just live like a conservative and save every penny, but not enjoy life for 20 or so years.

Are you gonna comment on why you disagree with this post, Captain Coward?

Or are you just gonna red and run like panzy?
 

DaSleeper

Trolling Hypocrites
May 27, 2007
33,676
1,665
113
Northern Ontario,
Re: Harper may annoy seniors.

He's announced potential changes to the O.A.P., one scenario could be raising the qualifying age to 67. The burning question is what changes is he going to make to politicians pensions? I suppose with many seniors now living well into their 90s something has to give. Stephen Harper: 'Major' changes coming to Canada's pension system, PM says in Davos speech | News | National Post

Yo!!! I noticed a change in my CPP and OAS deposit this morning in my bank account
About $5 for OAS and $18 for CPP raise....whooppee just enough for a 26 pounder:roll:
 

DaSleeper

Trolling Hypocrites
May 27, 2007
33,676
1,665
113
Northern Ontario,

JLM

Hall of Fame Member
Nov 27, 2008
75,301
547
113
Vernon, B.C.
Like Gordo, Harpo is talking through the hole in his head. He is taking about exporting jobs, not just resources. Harpo did the same thing and look what happened. He destroyed the logging industry by allowing the export of raw logs causing mills to shut down and put people out of work. And like Harpo, he blamed it on the environmentalists. The truth is something else but some people like the sound of farting better than the spoken word.

Unfortunately there are "environmentalists" around who don't use any common sense or do much research. Case in point are those who chain themselves to logging equipment and put hard working people's mortgage payments in jeopardy. That nonsense benefits nobody.
 

JLM

Hall of Fame Member
Nov 27, 2008
75,301
547
113
Vernon, B.C.
Re: Harper may annoy seniors.

Just goes to show how people pay attention to your numerous c/p's on Harper:smile:


If I was curious enough to take out my calculator, I could probably figure out your familly income with with that figure compared to mine..:lol:

Have at it. :lol:
 

#juan

Hall of Fame Member
Aug 30, 2005
18,326
119
63
Re: Harper may annoy seniors.

The burning question is what changes is he going to make to politicians pensions? I
I remember when MPs voted themselves a pension that only required them to be
elected to parliament for six years. It has gotten worse since then. We already
pay MPs more than most of them would get in the private sector. Do they really
need a super pension too???
 

JLM

Hall of Fame Member
Nov 27, 2008
75,301
547
113
Vernon, B.C.
Re: Harper may annoy seniors.

I remember when MPs voted themselves a pension that only required them to be
elected to parliament for six years. It has gotten worse since then. We already
pay MPs more than most of them would get in the private sector. Do they really
need a super pension too???

I'm not really into paying ANY pension to people who by rights should probably be in jail. :smile: