In its first budget, presented on March 22, the federal government announced it would launch consultations in the coming months to give Canadians an opportunity to share their views on enhancing the Canada Pension Plan.

The move got a positive reception from the Canadian Life and Health Insurance Association.  “We believe that the CPP levels should be reviewed, but the private sector should also play a key role in retirement savings by Canadians,” said Frank Swedlove, president and chief executive officer of the CLHIA.

In February, Finance Minister Bill Morneau said he was working with the provinces and territories to expand the Canada Pension Plan and he confirmed his commitment to do it within the year.

Read: Expect retirement changes in the federal budget, says Morneau

“An enhanced Canada Pension Plan would represent a major step in improving retirement outcomes for workers and reducing the uncertainty that many Canadians feel about being able to enjoy a secure and dignified retirement,” said the budget document.

Read: CPP to be expanded within the year

In response to the budget, the Canadian Federation for Independent Business expressed alarm at the minister’s personal commitment to reaching an agreement to expand the Canada Pension Plan/Quebec Pension Plan before the end of the year.

“If there was going to be one promise to defer in the budget given the state of the economy, it should have been the commitment to hike CPP/QPP payroll taxes,” said Dan Kelly, CFIB president.

The CFIB said it’s actively lobbying provincial governments to reject the proposal, which is expected to be discussed in a June meeting of finance ministers.

Read: Finance ministers agree to revisit pension reform talks in 2016

Read more stories about the impact of Budget 2016

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Crystal MacEachern:

What about the people that are receiving disability benefits or are trying to beg the government for disability benefits?

Why are sick and disabled Canadians having to apply, be denied, appeal, be denied, and wait years to have their claim heard by a tribunal. If you are a ‘lucky one’ you may have to suffer again by having your benefit amount deducted by your private insurance benefits and then pay taxes on benefit dollars you already paid taxes on.

Could the government please change the rules so that the CPP disability payments are protected from insurance companies that use the claims to their own advantage? The insurance companies require long term disability claimants to apply for CPP, then take any retroactive payments received, and deduct the CPP amount from their benefit amounts. Essentially padding their bottom line at the expense of the claimant and the Government. This policy is outrageously unfair to both disability claimants and all Canadians that pay into the CPP.

The CPP Disability format is doing a severe dis-service to hardworking Canadians that are forced to stop working because of disability or illness. Canadians that have to make a choice between underemployed poverty or disability poverty.

Would the Government please consider consultation with the missing stakeholders, when talking about changes to the CPP, the recipients?

Saturday, July 09 at 10:30 am | Reply

Duane Simpson:

It would be nice that CPP not cut off disability benefits at age 65. It is when they are going to be needed more and more. One is not miraculously whole and healthy at age 65.

Sunday, January 01 at 2:33 pm | Reply

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