Ottawa is proposing to allow Canadians to voluntarily contribute more to the Canada Pension Plan in exchange for a bigger guaranteed payout from the government-run program.
The announcement marks a significant shift for the Conservatives, who have long resisted changes to the CPP. It also amounts to a key campaign promise because this measure won’t be in place before an expected Oct. 19 federal election.
Finance Minister Joe Oliver announced the voluntary CPP expansion in the Commons Tuesday, saying the government would begin consultations this summer to hammer out the precise details.
“Our Conservative government believes all Canadians should have options when saving for their future. That is why we intend to consult on giving Canadians the voluntary option to contribute more to the Canada Pension Plan to supplement their retirement savings,” Mr. Oliver told the Commons during Question Period.
“We intend to consult with experts and stakeholders during the summer on options for allowing voluntary contributions to the Canadian Pension Plan.”
This expansion of the Canada Pension Plan on a voluntary, instead of compulsory, basis is an attempt by the Harper Conservatives to offer voters another way to save for retirement without obliging them to do so.
Ottawa has been at loggerheads with the opposition parties – and most provinces – for years over the issue. Labour groups and the seniors advocacy group CARP have long argued that voluntary savings vehicles don’t work and that a mandatory CPP expansion is needed to ensure all Canadians are saving enough for retirement.
The Tories have long rejected calls for enhancements to the government pension plan that would make bigger contributions mandatory, siding with business groups like the Canadian Federation of Independent Business who argue that increasing mandatory contributions to the CPP by employees and employers would be damaging to the economy.
Mr. Oliver said the voluntary plan would build on other government initiatives including tax-free savings accounts and pooled registered pension plans.
The Conservative finance minister contrasted his proposal with the NDP and Liberals, suggesting the Tories give Canadians more choice.
Tories propose voluntary Canada Pension Plan expansion - The Globe and Mail
The announcement marks a significant shift for the Conservatives, who have long resisted changes to the CPP. It also amounts to a key campaign promise because this measure won’t be in place before an expected Oct. 19 federal election.
Finance Minister Joe Oliver announced the voluntary CPP expansion in the Commons Tuesday, saying the government would begin consultations this summer to hammer out the precise details.
“Our Conservative government believes all Canadians should have options when saving for their future. That is why we intend to consult on giving Canadians the voluntary option to contribute more to the Canada Pension Plan to supplement their retirement savings,” Mr. Oliver told the Commons during Question Period.
“We intend to consult with experts and stakeholders during the summer on options for allowing voluntary contributions to the Canadian Pension Plan.”
This expansion of the Canada Pension Plan on a voluntary, instead of compulsory, basis is an attempt by the Harper Conservatives to offer voters another way to save for retirement without obliging them to do so.
Ottawa has been at loggerheads with the opposition parties – and most provinces – for years over the issue. Labour groups and the seniors advocacy group CARP have long argued that voluntary savings vehicles don’t work and that a mandatory CPP expansion is needed to ensure all Canadians are saving enough for retirement.
The Tories have long rejected calls for enhancements to the government pension plan that would make bigger contributions mandatory, siding with business groups like the Canadian Federation of Independent Business who argue that increasing mandatory contributions to the CPP by employees and employers would be damaging to the economy.
Mr. Oliver said the voluntary plan would build on other government initiatives including tax-free savings accounts and pooled registered pension plans.
The Conservative finance minister contrasted his proposal with the NDP and Liberals, suggesting the Tories give Canadians more choice.
Tories propose voluntary Canada Pension Plan expansion - The Globe and Mail
