Doubling CPP benefits is responsible, not radical

Green party leader Elizabeth May calls the federal NDP’s plan to phase in a doubling of CPP benefits ill-timed and “radical” [Letters, October 28–November 4]. With respect, I couldn’t disagree more. The fact is that there is a serious pension crisis in this country. Two million seniors are living in poverty. Defined benefit plans are disappearing. Defined contribution plans and private RRSP holdings are unable to generate the necessary incomes Canadians will need to live in retirement.

The NDP plan would address these alarming issues. It calls for the gradual doubling of CPP benefits (from $908 to $1,817 per month) by phasing in increased employer and employee contributions.

This is affordable: it would cost about the same amount of money (2.5 percent) that Canadians pay in administration fees for their RRSPs. It is simple: the administration costs are zero because every employer is already set up for payroll deduction. It is safe: the CPP is the largest, most portable, and most secure pension plan in the country.

People know there is only one way to fund our retirement: sufficient money put away in a safe and secure fund. The NDP plan does exactly that. Immediate action is required to ensure all Canadians can retire in the decades ahead. That’s not “radical”—it’s responsible.

> Don Davies, MP / Vancouver Kingsway

Comments

2 Comments

glen p robbins

Nov 4, 2010 at 7:52am

We need to see the books - not independent this or that - folks all become captive to one another, particular in the public sector.

Starting in BC, I want to see the books - I won't debate the standardized whimsy of those whose one and only ambition is to target more money from people - so they can have more time off with pay - and use the poor as hostages.

Having said that, the first people who get my attention are the poor - the rich are going to pay for this --- after we've seen the books.

I want to see the books.

really?

Nov 4, 2010 at 9:22am

"Two million seniors are living in poverty"? That's an odd claim, when statistics show that seniors have the lowest rate of poverty in Canada, and that only 6% are low income. Doubling CPP benefits will just make it harder for younger workers to survive as they struggle to support their own families and we oldies at the same time.