Changing CPP

[Topaz]

Today, in the Commons the parties are talking about CPP and how could they make changes to have every Canadian get this pension. The Liberal member brought up the fact that Harper wants to lose CPP and change it into a SUPER RRSP instead. She also said that only 18% of Canadians contribute to RRSP. The parl. secretary to the finance minister , said they would be changes of some sort to the CPP and other pensions, but not until fall. Now, knowing what this parties ability in the finance department, do Canadians want them doing ANYTHING to CPP?????

[Shady]

Today, in the Commons the parties are talking about CPP and how could they make changes to have every Canadian get this pension. The Liberal member brought up the fact that Harper wants to lose CPP and change it into a SUPER RRSP instead. She also said that only 18% of Canadians contribute to RRSP. The parl. secretary to the finance minister , said they would be changes of some sort to the CPP and other pensions, but not until fall. Now, knowing what this parties ability in the finance department, do Canadians want them doing ANYTHING to CPP?????

I like the idea of a super RRSP. You'd get a much better return for your money then with CPP. Especially people who will be retiring 10+ years from now and beyond.

[Jerry J. Fortin]

Today, in the Commons the parties are talking about CPP and how could they make changes to have every Canadian get this pension. The Liberal member brought up the fact that Harper wants to lose CPP and change it into a SUPER RRSP instead. She also said that only 18% of Canadians contribute to RRSP. The parl. secretary to the finance minister , said they would be changes of some sort to the CPP and other pensions, but not until fall. Now, knowing what this parties ability in the finance department, do Canadians want them doing ANYTHING to CPP?????

Nope, not a chance! Hey this will likely go over real well with citizens, just the thought of some political jerk messing around with their pensions. Great move Steve!

[Topaz]

What politicans HAVE remember, YOU mess with employees life contribution to their pensions, you are gone from Ottawa!

[Moonbox]

Regardless of what you guys think, the CPP needs needs needs changes. The baby boomers are already retiring and there is not a chance in hell that my generation will be able to support them. The shortfall will be enormous. I don't know what can be done but any of the boomers who DIDN'T put money into an RRSP are going to be screwed for short-sightedness or for being poor.

[msj]

Since Topaz still doesn't know how to provide a link:

Information Paper Proposed Changes to the Canada Pension Plan

And Moonbox, the CPP itself will be there for you - that's what the changes in the 1990's were for.

[Jerry J. Fortin]

Those changes were needed to keep the CPP viable. But what is it that this current government wants to do?

[Dave_ON]

Today, in the Commons the parties are talking about CPP and how could they make changes to have every Canadian get this pension. The Liberal member brought up the fact that Harper wants to lose CPP and change it into a SUPER RRSP instead. She also said that only 18% of Canadians contribute to RRSP. The parl. secretary to the finance minister , said they would be changes of some sort to the CPP and other pensions, but not until fall. Now, knowing what this parties ability in the finance department, do Canadians want them doing ANYTHING to CPP?????

I think that changes to CPP are a foregone conclusion. Based on the increasingly top heavy demographic in our population our current system will not be able to support itself. However, the question remains what do we do with those folks who have paid into it their entire working lives? What do they get back from their "investment"? In my generation I don't know of anyone that would think they could count on the CPP being around come our retirement, and thus we have started RSP's or are paying into a company pension or both.

Changes are inevitable and likely there will be some type of grandfathering that will be implemented.

[Bonam]

We shouldn't even have CPP. Those that have payed into it their whole lives obviously need to get their investment back when they retire, but the program should be cancelled. People can and should save for their own retirements, and not have money taken off their paycheques to fund the retirements of others.

Edited June 11, 2009 by Bonam

[Topaz]

Since Topaz still doesn't know how to provide a link:

Information Paper Proposed Changes to the Canada Pension Plan

And Moonbox, the CPP itself will be there for you - that's what the changes in the 1990's were for.

For YOUR info. I was listening to the debate in the Commons, there was no link.

[Topaz]

Regardless of what you guys think, the CPP needs needs needs changes. The baby boomers are already retiring and there is not a chance in hell that my generation will be able to support them. The shortfall will be enormous. I don't know what can be done but any of the boomers who DIDN'T put money into an RRSP are going to be screwed for short-sightedness or for being poor.

YOUR generation doesn't have to support the BBoomers as far as CPP goes, we've been doing that for the last 40+ years. The only shortfall to CPP is what the investors lost and the big bonus they give themselves for losing it!!

[Smallc]

The CPP is just fine. It was reformed in the 90s so that it would be sustainable and we should simply let it work...and change it if needed.

[Moonbox]

YOUR generation doesn't have to support the BBoomers as far as CPP goes, we've been doing that for the last 40+ years. The only shortfall to CPP is what the investors lost and the big bonus they give themselves for losing it!!

Your CPP contributions are supporting current pensioners. My CPP contributions (I'm not a baby boomer) will be supporting the baby boomer's pensions.

Forgive my ignorance, but could someone explain what the 1990 changes were that will fix CPP contribution problems when the boomers retire? I don't know anything about it sorry

[Renegade]

Today, in the Commons the parties are talking about CPP and how could they make changes to have every Canadian get this pension. The Liberal member brought up the fact that Harper wants to lose CPP and change it into a SUPER RRSP instead. She also said that only 18% of Canadians contribute to RRSP. The parl. secretary to the finance minister , said they would be changes of some sort to the CPP and other pensions, but not until fall. Now, knowing what this parties ability in the finance department, do Canadians want them doing ANYTHING to CPP?????

The CPP system should be adjusted because it has a number of rules which don't make sense:

1. People who retire eariler than 65 are not penalized enough becuase the amount they save by collecting for longer and not contributing between the time they retire and 65 is not sufficiently offset by the reduced pension amount.

2. The requirement to cease working in order to qualify for collecting makes no sense. Some people who are in a position to arrange a brief work stoppage to collect CPP and start working again are at an advantage

3. Longer lifespans means that people are working longer. Why shouldn't they be allowed to contribute to the pension plan as long as they can?

4. Males should be paid a higher pension then women because according to actuarial tables they live shorter lifespans.

5. Single receipients should recieve higher payouts than married receipients because the system isn't required to pay survivor benefits.

I am aware that the proposed changes do not address all of these but they do start to address some.

As far as a proposal that EVERY Canadian get a pension, that would be grossly unfair to contibutors to the plan as their benefits would be reduced to pay pensions for those who have not contributed. In any case the welfare system of OAS and GIS are available to all Canadians.

Edited June 11, 2009 by Renegade

[Renegade]

Your CPP contributions are supporting current pensioners. My CPP contributions (I'm not a baby boomer) will be supporting the baby boomer's pensions.

Unfortunately the pension system is somewhat run like a pyramid scheme where current contibutors support pension recepients. This can work as long as there a large population base supporting a smaller set of recepients. It becomes hard to sustain once the number of retirees outnumber contributors. We can see the scenarios play out at GM, Chrysler, Air Canada, and others.

Forgive my ignorance, but could someone explain what the 1990 changes were that will fix CPP contribution problems when the boomers retire? I don't know anything about it sorry

It was 1998 not 1990. Contribution rates were hiked to prevent plan collapse.

http://www.hrsdc.gc.ca/eng/isp/cpp/cppchanges.shtml

[Riverwind]

Forgive my ignorance, but could someone explain what the 1990 changes were that will fix CPP contribution problems when the boomers retire? I don't know anything about it sorry

The problem was 'fixed' by raising contribution rates paid by the workers. CPP contributions take 10% of a 40K salary now and will go higher as the boomers retire.

[Jerry J. Fortin]

It takes until October to pay off CPP and EI, the rest of the year we get a nice little raise!

[capricorn]

The maximum benefit payable under the Plan was reduced. CPP is adjusted yearly in accordance with inflation resulting in more savings through the reduced maximum payable. CPP recipients already receiving the pension were not affected (grandfather clause). The death benefit used to be equal to 6 months of retirement benefits was reduced to a maximum of $2,500.

The 1997 reforms also reduced CPP benefits. Pensions will be calculated on the average of maximum pensionable earnings in the last 5 years, instead of 3 years. The administration of disability pensions will be further tightened; applicants must have worked and made contributions in 4 of the last 6 years (instead of the old rule of 2 of the last 3 or 5 of the last 10 years); retirement pensions for disability beneficiaries will be calculated using the average wage at the time of disablement instead of when the recipient turns 65; and the ceiling on combined survivor-disability benefits will be set at one maximum disability pension. The one-time death benefit, currently equal to $3580 or 6 months of retirement benefits, will be reduced to $2500 and frozen.

http://www.thecanadianencyclopedia.com/ind...s=a1ARTA0001236

[mjp]

personally I Would like to see the CPP made optional... that way we can choose our own path to retirement..

[Jerry J. Fortin]

personally I Would like to see the CPP made optional... that way we can choose our own path to retirement..

I would like to "ADD" a provincial pension plan to Alberta.

[Hydraboss]

I would like to "ADD" a provincial pension plan to Alberta.

As long as it's optional.

[Hydraboss]

personally I Would like to see the CPP made optional... that way we can choose our own path to retirement..

Absolutely.

[geoffrey]

Nah, optional has an administration cost carried by the taxpayer. Just abolish it.

People need to be accountible for themselves. EI is one thing, welfare another. But CPP actually takes a certain percentage of your earnings and invests it in the markets for you. Why can't people do it themselves?

CPP is the ultimate in Ottawa hand-holding. Returns are geared towards older investors, I earn way more on my portfolio as I'm more open to risk due to my age.

An individual could take the same 5-ish% of their income that CPP takes and invest it themselves in some bond mutual fund and earn the same return.

Not rocket science. It makes no sense to have CPP, other than that some people cannot be responsible citizens.

[madmax]

Regardless of what you guys think, the CPP needs needs needs changes. The baby boomers are already retiring and there is not a chance in hell that my generation will be able to support them. The shortfall will be enormous. I don't know what can be done but any of the boomers who DIDN'T put money into an RRSP are going to be screwed for short-sightedness or for being poor.

CPP is rolling in dough and can cover itself regardless of the scare tactics. And ironically, some people suggest that those running CPP did better then those in the General Market and thus saved many a pensioner from the massive losses that they suffered in their RRSPs and are unlikely going to live long enough to make up for.

[madmax]

personally I Would like to see the CPP made optional... that way we can choose our own path to retirement..

You can choose your own path now.

You can contribute to any pension plan you want and collect CPP or you can choose to do SFA and still collect CPP and have alittle more then what many people will have come retirement.

If you want to end CPP contributions, then it will collapse and people will have squat, as a choice and likely a poorly performing RRSP that the government will still find a way to tax the hell out of.