Under the new plan, monthly payments will increase by $7 each year, for five years, beginning in 2019.
Advertisement
The move would also see a person’s maximum annual payout under the CPP climb by about a third, to about $17,500, up from the current benefits of about $13,000.
The National Finance Minister, Bill Morneau says that they’re hoping to improve the plan to make a greater impact on working Canadians. Ontario Premier Kathleen Wynne has pushed hard for a broad-based enhancement that would increase benefits along the lines of her government’s Ontario Retirement Pension Plan.
Support for reform was highest among Quebecers – which the Angus Reid Institute noted puts residents of the province on the opposite side of the issue from its provincial Liberal government, which has opposed CPP expansion.
4) Not every province has to have the CPP. Employers would match these contributions.
There hasn’t been such a level of consensus on CPP reform at a national scale since the 1990s.
Milligan added there is indeed a potential concern over the timing of CPP enhancement because payroll contributions would go up.
A change to the CPP needed the consent of Ottawa and a minimum of seven provinces representing at least two-thirds of the country’s population.
The federal government intensified its lobbying efforts over the final days and hours of ongoing meetings in Vancouver as it tried to attract support from enough provinces to ensure a CPP upgrade, said sources with knowledge of the talks.
He said people in the lower-income brackets receive help from the Guaranteed Income Supplement and Old Age Security, while those with higher incomes during their working years have usually stashed enough money for their golden years. In 1997, finance ministers agreed to a phased-in increase in premiums to ensure one generation of workers wasn’t paying for another generation’s retirement.
Ontario wants a deal now, but Saskatchewan and B.C. have suggested the economic conditions aren’t right for a change that’s likely to lead to an increase in the premiums that come off workers’ paycheques.
Advertisement
The federal and provincial governments are also looking at increasing the yearly maximum pensionable earnings, now set at 55-thousand dollars.
