With Canada’s finance ministers preparing for a meeting next month to discuss ways to enhance the Canada Pension Plan, what’s the likelihood of success?
In an interview with Benefits Canada’s sister publication Advisor in April, Finance Minister Bill Morneau said of plans to enhance the CPP: “Our approach is working with the provinces to see if we have the ability to get agreement that we can move forward on a CPP enhancement. I’m cautiously optimistic that we can, but as you know, this is something that needs to be negotiated. I’m working on that now.”
Read: Canadians’ retirement savings ‘wholly inadequate’
Under the Canada Pension Plan Act, amendments to the CPP require the agreement of the federal government along with seven provinces comprising two-thirds of the Canadian population. Adding to the pressure is the approaching implementation of the Ontario Retirement Pension Plan. Both the Ontario government and many critics of the ORPP have said an enhanced CPP would be the preferred route, but time is short with contributions to the Ontario plan starting in 2018 and the time lag required to implement any changes to the CPP. Saskatchewan, meanwhile, has come out against boosting the CPP, while Manitoba’s position is unclear in light of the recent election of a new government in that province.
Read: National employers face equity questions in deciding on ORPP
So what’s the chance of CPP reform actually happening? The question of is the subject of this week’s Benefits Canada online poll. Don’t forget to have your say.
As for last week’s poll, it asked whether employers have a duty to provide flexible working options. Nearly half (46 per cent) of those polled thought it was time to move away from traditional arrangements. The remainder (21 per cent) emphasized employer rights to determine what works best for them, while 32 per cent said the issue depends on the circumstances of the employer and the employee.
