Increasing Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) benefits would hurt the economy, according to a report by the Canadian Federation of Independent Business (CFIB).
Next month, provincial finance ministers will discuss C/QPP expansion.
The organization says one of the options under consideration would cost employees up to $1,100 more per year, bring employment growth to a halt, and cut wages by 1.5%.
“There’s been lots of talk about increasing benefits with very little mention of the cost,” says Ted Mallett, the CFIB’s vice-president and chief economist. “The short-term impacts are substantial, yet benefits could take decades to be fully implemented.”
The CFIB is Canada’s largest association of small- and medium-size businesses with 109,000 members across the country.
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