Beruflich Dokumente
Kultur Dokumente
ca
http://umanitoba.ca/outreach/evidencenetwork/archives/16612
starting at $25,000. Assuming a 40-year career, for workers earning $40,000, their contributions would increase by a total of $465 a year (split 50/50). This would bring an estimated increase in CPP benefits of $2250 per year. Someone earning $75,000, would pay extra contributions of $1550 (split 50/50) and would see a $7500 rise in pension benefits annually. The maximum increase in benefits would be $11,250 almost double the current maximum benefit under the existing plan. The PEI proposal stated that these changes would be phased in over a relatively short period of time (two to three years). Further, Minister Sheridan argues that the new contributions are not taxes because they are buying real benefits. It is not easy to amend the CPP. It requires the approval of 2/3rds of the provinces with 2/3rds of the population of Canada (including Qubec). And, as we saw on Monday, it can be nixed by a single party: the Federal Minister of Finance. The PEI proposal was carefully thought out and deserved serious consideration. The time for pension reform is now. PEI has a viable solution. It will be interesting to see if the announced Ontario go-it-alone proposals will use the PEI model. It wouldnt be a bad place to start. Robert Brown is an expert advisor with EvidenceNetwork.ca and a Fellow with the Canadian Institute of Actuaries. He was Professor of Actuarial Science at the University of Waterloo for 39 years and a past president of the Canadian Institute of Actuaries.