Provinces rule out supplementary CPP

'Take-note' debate in House of Commons examines pension reform


In the beginning round of talks on pension reform in the federal legislature, it appears there is little support for the idea of a supplemental Canada Pension Plan.

Only 10 per cent of private-sector pension plans fall under federal jurisdiction, with the remaining under provincial oversight and the provinces have unanimously ruled out a voluntary supplemental CPP, said Ted Menzies, parliamentary secretary to Finance Minister Jim Flaherty in a "take-note" debate in the House of Commons.

The debate on Nov. 23 examined Liberal MP Judy Sgro's private member's bill to establish a retirement income bill of rights.

The bill would allow Canadians without a "generous" defined benefit (DB) pension plan to participate in one, without having to belong to a workplace pension plan.

Sgro wants all workers to be able to contribute to a DB plan, regardless of employment status, and to scrap limits on how much workers can save in tax-protected savings plans.

However, Sgro's bill of rights is short on specifics, said Menzies, who is in charge of the pension reform brief.

The NDP support the idea of a bill of rights but wants to cut corporate tax reductions to put more money into Old Age Security and would like to see CPP benefits doubled.

A voluntary supplemental plan wouldn't work since only those with money would contribute, said NDP critic Wayne Marston.

The Conservative government has implemented various pension reforms recently, the first since 1985, said Menzies.

These include full funding of federally regulated pension plans on windup, that pension sponsors be allowed to overfund plans rather than take contribution holidays and the increase of tax expenditures for seniors relating to the age credit, the pension credit, income-splitting and the date of collapsing an RRSP into a registered retirement income fund (RRIF) or life annuity.

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