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April 15, 1996
Reforms to CPP can ensure its future
Ottawa -- The Canadian Council on Social Development is proposing reforms to the Canada Pension Plan that would ensure its long-term financial security and equity between generations. In the CCSD Response to the Federal-Provincial Information Paper for Consultations on the Canada Pension Plan released today, the organization makes four recommendations to strengthen the CPP, including increasing contribution rates, adjusting the CPP credit to offset the hike for those under age 40, allowing early retirees to draw partial pensions, and maximizing CPP fund investments.
"We support a rise in CPP contribution rates to 11.7 per cent of insurable earnings over the next six to eight years. The CPP is an excellent plan, and for a maximum cost of $1,360 a year, it would continue to offer comprehensive coverage at a rate similar to what many Canadians pay annually to insure their car," says CCSD President Charles Birchall.
In its 20 page paper, the CCSD also explains why seven proposals in the federal-provincial discussion paper should not be implemented.
"We don't support any moves that would reduce CPP benefits or make the plan more restrictive to Canadians. Canada already lags behind other industrialized countries in providing pension benefits. Our so-called "payroll tax burden" in Canada is far lower than the OECD average, and than that of the United States. It should not be used as an excuse to weaken the Canada Pension Plan," says Birchall.
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Canadian Council on Social Development,
190 O'Connor Street, Suite 100,
Ottawa, Ontario, K2P 2R3
Tel: (613) 236-8977, Fax: (613) 236-2750, Web: www.ccsd.ca, Email: council@ccsd.ca
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