CPP Changes Relegated to Back Burner


OTTAWA — Small business owners can breathe a sigh of relief — for the time being — as federal and provincial finance ministers will wait until June to decide about changing Canada’s Pension Plan (CPP).

The contentious issue came to a head in an Alberta meeting Monday, Dec. 20, following an ongoing debate in which Alberta and Ottawa reps were predominantly against a CPP increase, while the remaining majority of Canada’s provincial reps are for the change. Meanwhile, last week, Finance Minister Jim Flaherty submitted a privately administered, voluntary program dubbed Pooled Registered Pension Plan (PRPP).

Many are relieved that the door to change is still open. “Nobody’s preparing to do this overnight but we’ve kept it alive,” Ontario Finance Minister Dwight Duncan, and CPP increase supporter, told the Toronto Star.

On the other hand, the Canadian Restaurant and Foodservices Association is hoping things remain status quo, claiming a CPP increase will hurt lower-income earners, putting the entry-level jobs, which are popular in foodservice, at risk. “It is unfair to propose across-the-board increases in CPP premiums when the objective is to provide enhanced benefits for higher-income earners, who may not have adequately saved for retirement,” said Garth Whyte, CRFA president and CEO. “This approach will reduce take-home pay for lower-income employees and jeopardize jobs, particularly for youth.”


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