Retirement Pension Reforms
(Old Age Security, Canada Pension Plan)

La réforme des pensions de retraite
(Sécurité de la vieillesse, Régime de pensions du Canada)

- Jump directly to links to U.S. Social Security Reform
and the Chilean Pension Model
(lower down on this page)

La réforme de la sécurité sociale aux É.-U. - Le modèle des pensions au Chili

Updated February 3, 2012
Page révisée le 3 février 2012

[ Go to Canadian Social Research Links Home Page ]

NOTE: this page covers pension reforms only.
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For program information concerning Old Age Security and the Canada Pension Plan,
go directly to the OAS/CPP page on the Human Resources and Skills Development Canada website.

The links on this page are organized in reverse chronological order, with the most recent addition at the top, for the most part...

Why raising OAS to 67 doesn't make sense
http://www.moneyville.ca/article/1124518
By Ellen Roseman
February 1, 2012
Prime Minister Stephen Harper raised eyebrows with a speech last week that fueled speculation he plans to lift the eligibility for Old Age Security to 67 (from 65). Harper’s argument that deep cuts are required to keep the program afloat deserves closer attention, even though he’s been backpedalling ever since. I have two points to make:
— There is nothing new in the numbers he quotes about OAS costs rising as baby boomers retire.
— There are ways to reduce costs that won’t incense Opposition parties and organized seniors’ groups.

Comments (68):
http://www.moneyville.ca/article/1124518#comments

Source:
Moneyville (Toronto Star)
http://www.moneyville.ca/

Research shows Old Age Security system keeps seniors out of poverty
http://goo.gl/1kgho
February 1, 2012
By Heather Scoffield
OTTAWA - Research prepared for the federal government shows that the old-age benefits cited by Stephen Harper as perhaps unsustainable are a key factor keeping seniors out of poverty. The technical, 80-page paper shows that without Old Age Security or the Guaranteed Income Supplement, more than a third of women and more than a quarter of men in their 60s would fall below the poverty line. "The OAS programs have a significant influence on the incidence of low income," the report's author, Richard Shillington, wrote.
(...)
The paper, titled Evaluation of the Old Age Security Program*, was written by social policy researcher Shillington in 2009, on a contract with the Ottawa-based econometrics firm Informetrica Ltd. It was prepared for the Human Resources Department.
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* NOTE : I couldn't find this report online on Feb. 2 (2012)
Click the shortcut link below to see a Google Search Result page which will include the report if it's is eventually posted online.
http://goo.gl/BXyKP
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Source:
Canadian Business Magazine
http://www.canadianbusiness.com/

Related links:

Canadian Labour Congress
http://www.canadianlabour.ca/

Informetrica
http://www.informetrica.com/

Human Resources and Skills Development Canada
http://www.hrsdc.gc.ca/

Related link:

No changes to Old Age Security benefits in upcoming budget, Flaherty says
http://goo.gl/4IQrV
February 1, 2012
OTTAWA - The upcoming federal budget will not include changes to the Old Age Security program for seniors but changes are coming, Finance Minister Jim Flaherty said Wednesday. The minister said in a CBC interview from Israel that nothing in the coming budget will affect Canadians receiving benefits this year.
Source:
Winnipeg Free Press
http://www.winnipegfreepress.com/

Statement by the Prime Minister of Canada at the World Economic Forum
http://pm.gc.ca/eng/media.asp?id=4604
26 January 2012
Davos, Switzerland
(...)We have already taken steps to limit the growth of our health care spending over that period ["over the next generation"]. We must do the same for our retirement income system. Fortunately, the centerpiece of that system, the Canada Pension Plan, is fully funded, actuarially sound and does not need to be changed. For those elements of the system that are not funded [i.e., Old Age Security], we will make the changes necessary to ensure sustainability for the next generation while not affecting current recipients.
Source:
Prime Minister of Canada
http://pm.gc.ca/eng/index.asp

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From the
Toronto Star:
http://www.thestar.com/

Stephen Harper vows big changes to retirement benefits and immigration policy
http://www.thestar.com/news/canada/politics/article/1122179
January 26, 2012
By Bruce Campion-Smith
OTTAWA—Prime Minister Stephen Harper is vowing “major transformations” — including changes to Canada’s immigration system and retirement benefits — to ensure the future prosperity of the country. Feeling the demographic pressures of an aging population, Harper told an international economic forum that big changes loom to safeguard Canada’s wealth.

[ Comments (86)
http://goo.gl/uhAXp ]

Source:
Toronto Star:
http://www.thestar.com/

From CBC News:

Harper signals pension system 'changes' loom
PM outlines changes in speech at economic forum in Davos
http://www.cbc.ca/news/canada/story/2012/01/27/pensions-harper.html
January 27, 2012
Ottawa will transform the country's pension system to curtail government costs, but details won't come until the budget, said Prime Minister Stephen Harper. In a major speech to global movers and shakers at the World Economic Forum in Davos, Switzerland on Thursday, Harper also signalled looming reforms in immigration as well as research and development — all in the name of ensuring Canada's economy is on a strong footing.

[ 344 Comments:
http://www.cbc.ca/news/canada/story/2012/01/27/pensions-harper.html#socialcomments ]

Related CBC
News Links:

P.O.V. | Would pension changes affect your retirement?
http://www.cbc.ca/news/yourcommunity/2012/01/would-pension-changes-affect-your-retirement.html

Harper tells Davos that hard choices needed now
http://www.cbc.ca/news/politics/story/2012/01/26/davos-harper-thurs.html

Special report : RRSPs
http://www.cbc.ca/news/business/features/taxseason/

Retirement: Canadians get poor grades for savings
http://www.cbc.ca/news/business/taxseason/story/2011/12/20/f-rrsp-savings-rate-graph.html

MPs urged to give up 'platinum-plated' pensions
http://www.cbc.ca/news/politics/story/2012/01/18/pol-mp-pensions.html

Pooled pension plans become the latest retirement planning option
http://www.cbc.ca/news/business/taxseason/story/2011/11/17/f-prpp-details.html

Harper hints pension reform (video, duration 3:15)
http://www.cbc.ca/video/#/News/Canada/ID=2190720298

Source:
CBC News
http://www.cbc.ca/news

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Commentary by Andrew Jackson
of the Canadian Labour Congress:

Hiking the Retirement Age is the Wrong Answer to the Retirement Crisis
http://www.progressive-economics.ca/2012/01/27/hiking-the-retirement-age-is-the-wrong-answer-to-the-retirement-crisis/
January 27, 2012
Raising the age of eligibility for Old Age Security/Guaranteed Income Supplement (OAS/GIS) benefits is the worst possible way to deal with the retirement income security crisis facing Canadians. Experts such as former Assistant Chief Statistician Michael Wolfson project that one half of all middle income baby boomers face a severe cut to their living standards in old age. This is due to falling employer pension coverage (down to 25% in the private sector), rising household debt combined with low savings, and the big hit to “fend for yourself” RRSPs which comes from high fees and low investment returns.
Source:
Progressive Economics Forum Blog
http://www.progressive-economics.ca/relentless/

Provincial and federal governments partner toward introduction of Pooled Registered Pension Plans
http://www.fin.gc.ca/n11/11-134-eng.asp
News Release
December 14, 2011
The Honourable Ted Menzies, Minister of State (Finance), today announced that the Government released for consultation a package of draft legislative proposals for changes to the Income Tax Act and the Income Tax Regulations to accommodate Pooled Registered Pension Plans (PRPPs). In December 2010, there was unanimous agreement among provinces, territories and the federal government to move forward with the framework for PRPPs. The rules announced today will set the stage for all provinces to introduce legislation to implement PRPPs.

Related links:

Ottawa launches pooled pension plan
By Michael Lewis
November 18, 2011
The Harper government has tabled its framework for a pooled pension plan that it says will help fill the gap for the nearly two-thirds of Canadian workers without the security of a company sponsored pension. (...) But Liberal finance critic Scott Brison called the PRPP a half measure that will give maximum benefit to the banks and insurance companies who will earn transaction fees for administering the plan. He also called it a poor substitute for expansion of the defined benefit Canada Pension Plan that provides secure benefits for all Canadians. (...) Canadian Labour Congress President Ken Georgetti called PRPPs privately administered workplace pension plans that resemble group RRSPs. As such, he said they will fail to secure predictable benefits in retirement indexed against inflation, won’t match the CPP’s low cost and will lack the CPP’s survivor and disability benefits and universal portability.
Source:
Moneyville.ca
[ Toronto Star ]

Harper Conservatives failing to address retirement income crisis
November 17, 2011
Legislation creating pooled registered pension plans is an ineffective and woefully inadequate way to address Canada’s retirement income security crisis. Canada’s largest union is calling on the federal government to quit stalling with half-measures and to start acting with the provinces on urgently needed reforms to public pensions.
Source:
Canadian Union of Public Employees (CUPE)

55,000 eligible Canadians aren’t getting CPP. Why?
By Gordon Pape
August 21, 2011
If this comment offends some readers I’m sorry, but it needs to be said. When it comes to finances, many of us are at a kindergarten level. Millions of Canadians have no understanding of some of the most basic concepts needed to function in today’s world, from budgeting to handling debt.

The federal government’s Task Force on Financial Literacy was more diplomatic in its language but that was the essence of its message to the government and the Canadian people in its final report, published earlier this year.

(...) Ignorance and/or indifference costs Canadians billions of dollars every year — that’s right, billions! Here are some almost unbelievable numbers from the findings of the Literacy Task Force.
•Roughly 160,000 eligible seniors do not receive the Old Age Security benefit (representing almost $1 billion in pre-tax benefits).
•About 150,000 eligible seniors do not receive the Guaranteed Income Supplement.
•Approximately 55,000 eligible Canadians are not receiving Canada Pension Plan benefits.
•The take-up rate for the Canada Education Savings Grant is just 40 per cent.
•The median RRSP contribution represents only 6 per cent of the total eligible room available.
As might be expected, the Task Force called for more financial education, both for young people and adults...

[ Comments (24) ]

Source:
Moneyville
[ Toronto Star ]

A New Pension Plan for Canadians : Assessing the Options (PDF - 359K, 44 pages)
By Keith Horner
July 2011
The author compares the features and effects of various pension reform options and concludes that a new, national, mandatory, defined-benefit plan, such as an enrichment of the Canada and Quebec Pension Plans, would provide the greatest benefits to plan participants and the economy.
[Keith Horner, a former Finance Department official.]

Expanding CPP/QPP would maintain future retirees’ living standard
National, mandatory, defined-benefit plans would be higher, more secure (PDF - 203K,1 page)
News Release
July 5, 2011

Source:
Institute for Research on Public Policy

Financial Literacy and the Take-up of Government Benefits (PDF - 585K, 41 pages)
Research paper prepared for the
Task Force on Financial Literacy
By Richard Shillington
File dated February 4, 2011
- includes detailed information on the utilization of government benefits for saving, child-rearing, education and retirement in Canada
(Old Age Security - Guaranteed Income Supplement - Canada Pension Plan - Disability Benefits - Student Loans - more...)
Source:
Research Commissioned by the Task Force on Financial Literacy
- links to 13 research reports on various aspects of financial literacy

Task Force on Financial Literacy in Canada
In the 2009 budget, the Minister of Finance announced his intention to establish a national task force dedicated to the issue of financial literacy. Appointed in June 2009, the Task Force on Financial Literacy is comprised of 13 members, drawn from the business and education sectors, community organizations and academia.
- incl. links to : * Home * About the Task Force * Report of the Task Force * Consulting with Canadians* Media * Contact Us * Links

-------------------------

Related links:

Framework for Pooled Registered Pension Plans
December 2010
This backgrounder sets out a framework for defined contribution PRPPs across Canada that will improve the range of retirement saving options to Canadians
Source:
Finance Canada

Saskatchewan. Pension Plan may be used to develop changes nationally
By Bruce Johnstone
December 27, 2010
The province that introduced medicare and public auto insurance to Canada -- could soon be leading the way in pension reform as well. The Saskatchewan Pension Plan, which has been around since 1986, may well be the model for the pooled pension plans that the country's finance ministers proposed last week in Kananaskis, Alta. The federal and provincial finance ministers agreed to introduce legislation to allow the creation of pooled registered pension plans (PRPPs), targeted to employees of small-and medium-sized businesses. The PRPPs would be 'low-cost' private pension plans that would be available to employees without a company pension plan or even an employer, in the case of self-employed people. Employee participation would be mandatory, unless the employee opted out of the plan. The closest thing we have to a PRPP in Canada today is the Saskatchewan Pension Plan (SPP), a voluntary pension plan to which employees, self-employed individuals and/or their spouses can contribute up to $2,500 annually.
Source:
Regina Leader-Post

From the
Canadian Labour Congress:

Georgetti urges quick action on enhancing Canada Pension Plan
- Says Canadians losing opportunities to save for retirement
December 20. 2010
OTTAWA – Finance Ministers should move as quickly as possible to provide enhancements to the Canada and Quebec Pension Plans, says Ken Georgetti, president of the Canadian Labour Congress. “We have a looming pensions crisis and we can’t wait for years to fix this problem,” Georgetti says. “An improved CPP is easily the best way to guarantee retirement security for Canadians.” Georgetti was commenting on the Finance Ministers’ meeting in Kananaskis, Alberta on December 19-20. At least six of the provinces prefer an enhanced CPP, a proposal that federal Finance Minister Jim Flaherty supported until very recently. But he now wants provinces and territories to support a privately administered option called Pooled Registered Pension Plans (PRPPs). The ministers have agreed to do more work on both proposals and to meet again in June. “Mr. Flaherty’s idea is, at best, a poor alternative to CPP expansion,” Georgetti says.

Q's and A's re. proposed Pooled Registered Pension Plans
(...) PRPPs are a better option than an individual RRSP and other alternatives, with potential lower cost (not demonstrated or legislated) and fiduciary role. But it won’t guarantee you a decent retirement income and is greatly inferior to the option of expanding the benefits under the Canada Pension Plan.
Source:
Canadian Labour Congress

From the
Progressive Economics Forum:

Flaherty’s Inferior Pension Plan (FLIPP)
By Andrew Jackson
December 20, 2010
. Basically they are like group RRSPs, but sponsored by a financial institution with a fiduciary responsibility as opposed to an employer. They may be somewhat lower cost than individual RRSPs, as with current group RRSPs. However, there will be a lot of such plans, with different investment options, so large economies of scale will not be reached. Unlike the CPP, there is no mandatory employer contribution; no defined benefit based on career average earnings; no inflation protection,; and no assurance of full portability. Costs, including financial institution profits, will lower returns considerably compared to the CPP alternative. Would such plans gain a lot of members? Enrollment of employees could be mandatory, at the discretion of a province, but almost certainly with an opt out provision. Some individual RRSP accounts could be transferred to new, larger pools. At best, a very poor alternative to CPP expansion.

Source:
Progressive Economics Forum (PEF)
Economic policy-making and economics instruction in Canada have both increasingly come to reflect a conservative, free-market perspective. There is an urgent need to promote an alternative, progressive economics community in Canada. Over 125 progressive economists—working in universities, the labour movement, and activist research organizations—have joined forces to make our collective, critical perspective heard. We have formed the Progressive Economics Forum. The general goal of PEF is to promote the development of a progressive economics community in Canada.

November 12, 2010
Pension Satellite Account, 2009
After a steep decline in 2008, the total value of pension assets rebounded in 2009 to $2.1 trillion at year end, reflecting the strong performance of global equity markets that began in March 2009. This rebound (+15.5%) brought pension assets close to their 2007 level. The recovery in wealth accumulation during 2009 was relatively evenly distributed across the three pension tiers. Individual registered saving plans led the way, up 20.5% to $750.9 billion. Social security and employer-based pension plans were up 13.3% and 12.8%, respectively.

Related link:

Guide to the Canadian Pension Satellite Account
[Use the links in the left margin to navigate this report,
or download the PDF version - 153K, 19 pages)
This guide presents an overview of the scope and structure of the Pension Satellite Account as well as the methodology used to derive its stocks and flows estimates.

Source:
The Daily
[Statistics Canada]

Ontario Seeks to Strengthen Canada's Retirement Income System:
McGuinty Government Consults On A More Secure Retirement
News Release
October 29, 2010
Ontario is taking the next step to strengthen retirement income security by releasing the discussion paper "Securing our Retirement Future: Consulting with Ontarians on Canada's Retirement Income System." It outlines the challenges facing Ontarians and all Canadians who are seeking a stable and secure retirement income and the options available to them.

Securing Our Retirement Future:
Consulting with Ontarians on Canada's Retirement Income System
(...) While our system is already strong, we can do a number of things to make it even better. Ontario supports a three-point approach to help create a truly world-leading retirement income system.
First, we need to update our own employment pension laws.
Second, we must build on the strengths of the CPP through a modest expansion of benefits.
Third, we need more pension innovation.
...
Feedback on the discussion paper should be submitted no later than November 29, 2010.
Please submit comments to Pension.Feedback@ontario.ca
... or send written comments to:
Ministry of Finance
Retirement Income Security Submission
c/o Communications & Corporate Affairs Branch
3rd Floor, Frost Building North
95 Grosvenor Street
Toronto, ON
M7A 1Z1

Source:
Ontario Ministry of Finance

--------------------------------

Related links from the
Government of Ontario:

Further Improvements To Pensions For Ontarians:
McGuinty Government Continues to Modernize and Strengthen Retirement Income System
October 19, 2010
Reforms to be introduced today will further strengthen Ontarians' pensions, addressing concerns of workers, retirees, and employers. The Securing Pension Benefits Now and for the Future Act, 2010 builds on the first phase of reforms that passed unanimously last Spring.

* Learn more about Ontario's position on retirement income reform
* Read a summary of the report by the Expert Commission on Pensions

- Go to the Ontario Government Links page: http://www.canadiansocialresearch.net/onbkmrk.htm

Canadians support increase in Canada Pension Plan benefits
October 15, 2010
More than three quarters of Canadians support increasing Canada Pension Plan benefits, according to a new national survey released today. Eighty percent of Canadians also support increasing federal payments to senior citizens and half of the survey respondents believe the government is moving too slow in reforming Canada’s pension system. The Future of Pensions poll was completed by Environics Research Group in late August for the Canadian Union of Public Employees and the Public Service Alliance of Canada. It surveyed 2,020 Canadians and has a margin of error of +/-2.2 per cent 19 times out of 20. (...) The survey asked Canadians their views on saving and their expectations for retirement. While many Canadians have set up a Retirement Savings Plan or a Tax-Free Savings Account, four in 10 acknowledge that they are not saving for retirement—mostly because they cannot afford to. (...) Poll respondents also overwhelmingly support increasing Old Age Security and Guaranteed Income Supplements for those living below the poverty line. OAS and GIS payments amount to only $11,000 per year.

Detailed Poll Highlights

Source:
Canadian Union of Public Employees (CUPE)
Public Service Alliance of Canada
Together, CUPE and PSAC represent more than 800,000 public sector workers across Canada. Both organizations have been advocating for retirement security for all Canadians.

Public consultation on ensuring the ongoing
strength of Canada's retirement income system
March 24 - May 14, 2010

Ensuring the Ongoing Strength
of Canada’s Retirement Income System*
- provides background information on Canada's retirement income system;
- provides an overview of research on retirement income adequacy;
- describes a variety of proposals in the public domain relating to Canada's retirement income system; and
- solicits views of Canadians on Canada's retirement income system and how to ensure its ongoing strength.

* NOTE: Recommended reading - includes over a dozen links to related and contextual information in areas such as:
- Canada's Government Supported Retirement Income System
- Research on Retirement Income Adequacy
- Considerations for Evaluating Retirement Income System Issues
- Range of Proposals in the Public Domain
- Summary of Questions

This public consultation took place from March 24 to May 14, 2010.

Related link:

News Release
March 24, 2010
The federal government today announced the launch of online consultations and a series of cross-country roundtable discussions, speaking engagements and town hall meetings to gather input from Canadians on ensuring the ongoing strength of Canada’s retirement income system. The consultations will inform discussions at the next meeting of federal, provincial and territorial Ministers of Finance in May, where the retirement income system will be a key agenda item.
(...)
Public town hall meetings will be held in Charlottetown, Prince Edward Island, Quebec City, and Richmond, British Columbia. Roundtable discussions with invited key stakeholders, experts and representatives from provincial and territorial governments will take place in St. John’s, Newfoundland and Labrador, Winnipeg, Manitoba, and London, Ontario.

Source:
Department of Finance Canada

Pension reform issue poses threat
Concrete plan needed to avoid hard lobbying: reform advocates
By Norma Greenaway
January 11, 2010
Federal and provincial governments will pay a political price if they fail to turn a vague commitment made in December to pursue pension reform into a concrete plan to bolster Canadians' retirement savings, reform advocates are warning. The Canadian Labour Congress and the leading advocacy group for seniors, known as CARP, vow no-holds-barred campaigns to persuade the Harper government to commit to pension reform in its March throne speech and to keep provincial governments on the case.
Source:
The Ottawa Citizen

Related links:

Next budget must stress good jobs
- Georgetti says unemployment, low wages hurting younger workers
January 8, 2010
OTTAWA – When the federal government introduces a new budget in March, it must make the creation of good jobs a priority, says Ken Georgetti, president of the Canadian Labour Congress.
Source:
Canadian Labour Congress
The Canadian Labour Congress, the national voice of the labour movement, represents 3.2 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils.

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No Excuses - CARP Poll gives specific Advice
December 17, 2009
TORONTO - Over 1,700 CARP members responding overnight to CARP’s Pension Reform Poll want real action and give specific advice as well as their reaction to recent federal proposals.

CARP
CARP is committed to enhancing the quality of life for all Canadians as we age by advocating for social change that will bring financial security, equitable and timely access to health care and freedom from discrimination.
CARP was originally known as the Canadian Association of Retired Persons, and is now called Canada's Association for the Fifty-Plus. (According to this Wikipedia article)

From the
Canadian Centre for Policy Alternatives:

Old Age Security system needs strengthening: report
Press Release
November 25, 2009
OTTAWA—Canada’s Old Age Security system needs improvement in order to help ensure the economic security and dignity of Canadians in retirement, says a new report released today by the Canadian Centre for Policy Alternatives (CCPA). The report, by pension expert and CCPA Research Associate Monica Townson, reviews OAS and its associated programs of the Guaranteed Income Supplement (GIS) and the Allowance and discusses measures that could be taken to strengthen this part of Canada’s pension system.

Complete report:

A Stronger Foundation: Pension Reform and Old Age Security (PDF - 146K, 7 pages)
By Monica Townson
November 2009

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Pension system needs urgent attention: report
Press Release
October 8, 2009
OTTAWA— Canada’s pension system needs urgent attention, says a new report released today by the Canadian Centre for Policy Alternatives (CCPA). The report, by CCPA Research Associate and pension expert Monica Townson, outlines some of the problems with Canada’s pension system and examines some of the options that have been proposed to deal with them.

Complete report:

What Can We Do About Pensions? (PDF - 147K, 9 pages)
By Monica Townson
October 2009

Source:
Canadian Centre for Policy Alternatives
The Canadian Centre for Policy Alternatives is an independent, non-partisan research institute concerned with issues of social and economic justice. Founded in 1980, the CCPA is one of Canada’s leading progressive voices in public policy debates.

Minister of Finance Modernizes Federal Pension Framework
October 27, 2009
News Release
The Honourable Jim Flaherty, Minister of Finance, today released an important reform plan for the federal private pension legislative and regulatory framework. (...) Today’s announcement comes out of extensive consultations with Canadians, beginning with the January release of a discussion paper, Strengthening the Legislative and Regulatory Framework for Private Pension Plans Subject to the Pension Benefits Standards Act, 1985, and including online consultations. (...)
The package includes measures to:
* Enhance protections for plan members.
* Reduce funding volatility for defined benefit plans.
* Make it easier for participants to negotiate changes to their pension arrangements.
* Improve the framework for defined contribution plans and for negotiated contribution plans.
* Modernize the rules for investments made by pension funds.

Backgrounder - detailed information on each of the five measures

Source:
Finance Canada

From The Globe and Mail:

Retirement Lost (seven-part series - October 16-24, 2009)
Canada's retirement dreams are under siege, weakened by underfunding and hobbled by the global recession.
It's a national crisis with no easy answers.

* Part one: The crisis
--- Retirement dreams under siege
By Jacquie McNish
October 16, 2009
- incl. links to: * Article * Video * Photos * Pension scenarios * Comments (198)
What you need to know:
--- 84% of public service workers have pensions.
--- 78% of these plans are gold plated defined benefit pensions
--- 25% of private sector workers have a pension plan
--- 16% of these plans are gold plated defined benefit pensions
--- 11 million workers, or 60 per cent, of Canada’s workers have no pension at all
--- 8 million or 45 per cent, have no pensions or registered retirement savings plans (RRSPs)

* Part Two: Manufacturing's wreckage
--- Bankrupt companies, pension promises destroyed
By Greg Keenan
October 18, 2009
- incl. links to : * Article * Video * Photos * The history of pensions (recommended by Gilles!) * Comments
What you need to know:
--- 17.6 million: Number of people in the Canadian work force.
--- 11 million: Number of Canadian workers without pension plans.
--- 4 million: Number of those workers with registered retirement savings plans.
--- 10,000: Number of pension plans in Canada.
---- 4.5 million: Workers with pension plans who have defined benefit plans that guarantee the pension income of retirees until they die.
--- 55 per cent: Amount of those plans held by public sector employees.
--- $25,000: Average pension per year.

* Part three: Death of the traditional plan
--- Hybrid pension plans: a hard sell
By Janet McFarland
October 19, 2009
- incl. links to : * Article * Video * Photos * The history of pensions * Comments (36)
As companies weigh alternatives for the future, a crucial choice comes down to a pair of innocuously simple-looking bits of shorthand: Will the future be DB (Defined Benefit) or DC (Defined Contribution)? Traditional pension plans are DB, defined benefit. A retiree covered by the plan is guaranteed a given level of income. If the plan falls short, the employer is on the hook. The new model, increasingly favoured by employers, is DC, defined contribution. In this approach, the employer’s responsibility is limited to making a certain (“defined”) contribution to the employees’ pension plan. Contributions made by both the employer and employee go into an individual account for the employee, who makes his or her own investment choices. If the plan falls short, the employee is on the hook.

* Part four: Conflicts of interest
--- Financial planning: Whom should you trust?
By Rob Carrick
October 20, 2009
- incl. links to : * Article * Video * Photos * The history of pensions * Comments (78)
As pensions become unreliable, more Canadians are being forced to plan for retirement themselves. But whom do you turn to for help? The experience of one couple who relied on a financial adviser is a cautionary tale.

* Part five: Underfunded dreams
--- No pension safety net for self-employed
By Andrew Willis
October 21, 2009
- incl. links to : * Article * Video * Photos * The history of pensions * Comments (59)
Meet the next generation of retirees: middle-class workers without pensions who are left to their own devices and facing an uncertain financial future. As formal pension plans become increasingly less common, many Canadians face a savings burden that many are unwilling – or unable – to shoulder.

* Part six: Steps to financial freedom
--- Freedom 55? Couple couldn’t wait that long for retirement
By John Heinzl
October 22, 2009
- incl. links to : * Article * Video * Photos * The history of pensions * Comments (84)
In a society that encourages consumers to borrow and spend, in which the pressure to upgrade homes, cars and gadgets never stops, living within one’s means and staying out of debt is a challenge. But for people who make a middle-class salary, the “boring” approach may be the surest route to building wealth and achieving financial security, say those who have done it.

* Part seven: Reforming a broken system
--- Canada's gathering pension storm
By Konrad Yakabuski
October 23, 2009
- incl. links to : * Article * Video * Photos * The history of pensions * Comments (36)
Italy may be one of the worst off, but all developed countries, along with China, will experience unprecedented economic and social pressure in coming decades as their populations grey. Few, if any, have prepared for the demographic tsunami that will hit them as the baby boom generation heads into its golden years. By comparison, Canadians have some reason to feel fiscally smug, with a public pension system considered one of the world’s most financially sustainable. There’s only one catch: That system pays among the least generous government-sponsored benefits in the developed world.

Source:
The Globe and Mail

From the
Special Senate Committee on Aging:

Canada’s Aging Population:
Seizing the Opportunity (PDF - 1.4MB, 237 pages)
April 2009
In November 2006, the Special Senate Committee on Aging was created with a broad mandate to review a wide range of complex issues to determine if Canada is providing the right programs and services at the right time to the individuals who need them. The Committee has reviewed public programs and services for seniors, identified the gaps that exist in meeting their needs, and examined the implications for service delivery in the future as the population ages. [Excerpt from the Foreword]

* Recommendations
* Setting the Vision
* Background

Source:
Reports
(40th Parliament, 2nd Session: January 26, 2009 - )
of the
Special Senate Committee on Aging
[ Parliament of Canada website ]

Related link:

More federal assistance for seniors: Senate report
April 21, 2009
By Joan Bryden, The Canadian Press
OTTAWA - The federal government needs to do much more to assist the aging population, including beefing up pension, old age assistance and compassionate care benefits, says a new report. The final report of the special Senate committee on aging, released Tuesday, concludes there are serious gaps in health care, housing, transportation and support systems for seniors. And those problems are only going to grow as the baby boom generation enters the retirement years.
Source:
Yahoo Canada News

For links to information on Canadian retirement pension reforms,
see the Retirement Pension Reforms page:
http://www.canadiansocialresearch.net/pensions.htm

From Statistics Canada:

Pension savings of Canadians
in 1993 and in 2003
- incl. total accumulated assets of Canadians (in current and constant 2003 dollars) invested in:
* Public plans * Registered pension plans (RPPs) * Registered retirement savings plans (RRSPs)
* Supplementary retirement income programs
Source:
Tables by subject: Employment insurance,
social assistance and other transfers<=== links to six more tables
[ Statistics Canada ]

Related link:

A brief history of pensions.
Pay attention because you may be about to lose yours
August 1, 2009
By Thomas Walkom
The drive to dismantle the welfare state has a new target. Governments have already gutted unemployment insurance and social assistance. Out-of-date labour laws make it tough to organize unions in the new, decentralized, service-based economy. Now, thanks in large part to the dynamics of the recession, pensions are under attack. (...) Even before this recession hit, it was clear that pensions were under the gun. Good retirement benefits, like good wages, interfere with what economists call labour market flexibility – that is, the willingness of workers to take low-wage jobs.
Source:
The Toronto Star

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From Strategic Thoughts:

Canada Pension Plan Loss at $25 Billion
October 8, 2008
It will be February before we know how much the Canada Pension Plan recently lost on the stock market, but a fair guess is $25 billion disappeared between the end of the first quarter on June 30th and October 8th. On June 30th the CPP had $127.7 billion in assets, $79.2 billion of which was in equities. On June 30th the TSX composite index was 14,467; on October 8th it was 10,056, a drop of 30.5%.
Source:
Strategic Thoughts
[Website of BC political pundit David Schreck]

More strategic thoughts - from September and October 2008
[HINT : click the links for earlier months.]

---------------------------

Canadian government policy and seniors living in poverty
August 25, 2008
A blog post on the Progressive Economics Forum, "Falling Poverty Among the Elderly - A Canadian Success Story", describes how the poverty rate for seniors has fallen from 11.3% in 1989 to just 5.4% in 2006 (3.4% for elderly men, and 7.0% for elderly women.) This puts the average poverty rate for seniors in Canada lower than Sweden (6.6%) and way below the U.S. (21%). The author speculates that the senior poverty rate has fallen due to progressive social policies such as the Old Age Security and Guaranteed Income Supplement, as well as high private pensions during the 1970s and 1980s. But poverty among seniors still disproportionately effects women, people of colour, immigrants and people with disabilities. A 2006 report from the National Advisory on Aging, Seniors on the Margins: Aging in poverty in Canada (see the link below) looks more seniors in the next decade, especially marginalized seniors, may not have access to the resources they need.
Source:
PovNet
An online resource for advocates, people on welfare, and community groups and individuals involved in anti-poverty work.

Related links:

Falling Poverty Among the Elderly - A Canadian Success Story
Posted by Andrew Jackson
August 7, 2008
Source:
Progressive Economics Forum Blog
[ other posts by Andrew Jackson ]
[ Progressive Economics Forum ]
The Progressive Economics Forum aims to promote the development of a progressive economics community in Canada. The PEF brings together over 125 progressive economists, working in universities, the labour movement, and activist research organizations. ]

Seniors on the Margins: Aging in poverty in Canada (PDF - 299K, 33 pages)
September 2005
Seniors on the Margins is a series of policy papers presenting NACA opinions and recommendations on the needs and concerns of seniors who are marginalized, or at risk of marginalization in Canadian society.
Source:
National Advisory Council on Aging (NACA)
NOTE: In May 2007, NACA was replaced by the National Seniors Council (see the link below). Despite all of the pontificating on accountability, transparency and disclosure that we hear from Canada's No-Longer-New Government, the NACA website ceased to exist when the Seniors Council was created. The above NACA link is from The Wayback Machine (Archive.org).
[ For more info about The Wayback Machine, go to the Reference Links page of this site http://www.canadiansocialresearch.net/reference.htm ]

For more information on government policy and seniors see:

* National Seniors Council - advises Canada's Government on all matters related to the health, well-being and quality of life of seniors.
* Seniors Canada - Federal government information

From the Caledon Institute of Social Policy:

A Tale of Two Pension Plans:
The Differing Fortunes of the Canada and Quebec Pension Plans (PDF file - 192K, 46 pages)
Ed Tamagno
January 2008
The Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) are headed towards an historical crossroads. The most recent actuarial valuation of the CPP shows that the federal scheme is sound in its financing and should remain financially sound for the foreseeable future, without the need for any increase in its contribution rate over the next 75 years. Not entirely so, however, for the QPP. Although the Quebec plan is in no imminent financial difficulty, its most recent actuarial valuation indicates that changes to the QPP’s financing or benefits must be made well before 2050 or the scheme will be unable to meet its commitments fully after that year. This paper examines the reasons for the divergence in the financial projections of the Canada and the Quebec Pension Plans and proposes ways in which the parallelism of the two schemes, which has been a mainstay of federal and provincial policy for over four decades, can be maintained.

---------------------------

From the Department of Finance Canada:

Canada Pension Plan Remains Strong for the Benefit of Canadian Seniors
News Release
October 29, 2007
The Canada Pension Plan is on a financially sustainable footing for at least the next 75 years, according to the 23rd Actuarial Report on the Canada Pension Plan, which Minister of Finance Jim Flaherty tabled in Parliament today.

From the Office of the Chief Actuary, Canada Pension Plan:

Actuarial Report (23rd) on the Canada Pension Plan (PDF file - 799K, 132 pages)
As at December 31, 2006
Tabled before Parliament on October 29, 2007

Executive Summary (PDF file - 710K, 4 pages)
"...despite the projected substantial increase in benefits paid as a result of an aging population, the Plan is expected to be able to meet its obligations throughout the projection period [until 2075]."

Related link:

Pension funds in best shape in five years
Higher interest rates leave average fund in surplus position
October 24, 2007
Canadian pension funds are in the best financial shape they've been in more than five years, and have managed to build up a small surplus as a cushion against future setbacks, according to a report yesterday that credits higher interest rates for the improvement.
Source:
The Ottawa Citizen

Comment:
The next time the C.D. Howe Institute or Fraser Institute questions the sustainability of the Canada Pensions Plan and suggests that we need to dump or overhaul the program, just remember:
Office of the Chief Actuary = unbiased, responsible to the people of Canada.
Right wing think tanks = bias, accountable to the corporations that fund them.

-------------------------------------------------------

Review Finds Canada Pension Plan Is Financially Sound
News release
June 27, 2006
"Federal and provincial Ministers of Finance, as joint stewards of the Canada Pension Plan (CPP), today announced the conclusion of their triennial financial review of the CPP. The review confirms that the CPP is on sound financial footing. "Our analysis suggests that the 9.9 per cent contribution rate will be sufficient to sustain the Plan into the foreseeable future," stated the Honourable Jim Flaherty, Minister of Finance. "We have therefore agreed that the contribution rate will remain unchanged." By providing over 3 million retired Canadians with maximum benefits of up to $844 per month, the CPP represents a key pillar of Canada’s retirement income system. With assets projected to grow to $250 billion in the next 10 years, the Plan has been recognized internationally as an affordable model for securing adequate retirement income in the face of population aging and economic change."
- incl a backgrounder "Proposed Changes to the Canada Pension Plan"
Source:
Department of Finance Canada

Canada Pension Plan Pensionable Earnings Ceiling for 2006 up to $42,100
November 2, 2005
- includes, for 2006, maximum pensionable earnings, the basic exemption and employer/employee contribution rates
Source:
Canada Revenue Agency

Canada Pension Plan Financially Sound: Chief Actuary
December 8, 2004
News Release
"The Canada Pension Plan is financially sound for at least the next half century at the currently legislated 9.9-per-cent contribution rate, according to the 21st Actuarial Report on the Canada Pension Plan, which was tabled in Parliament today by Minister of Finance Ralph Goodale."
Source:
Finance Canada

Related links:

With Obama address, Democrats revive specter of GOP threat to Social Security
By Michael D. Shear and Lori Montgomery
August 15, 2010
Reviving a political tactic that Democrats have used before, President Obama said in his radio address Saturday that "some Republican leaders in Congress" want to privatize Social Security -- even though few GOP lawmakers today support the idea.
Source:
Social Security - A washingtonpost.com special report detailing the debate over proposed changes to Social Security, the nation's largest entitlement program.
- also includes links to :
* A Glimpse of Older America
* Aging Population Poses Challenges
* more similar articles...
Source:
Washington Post

The White House Blog:

Weekly Address: Honoring Social Security, Not Privatizing It
Video
Transcript
Posted August 14, 2010
Source:
The White House Blog
[ The White House ]

--------------------------------------------------------------------------------

Review of international pension reform, (PDF - 471K, 131 pages)
June 2010
By S. Collard and N. Moore
Source:
Department for Work and Pensions, London, Research report, n° 663, June, 131 p., (2010).
The eight case study countries selected for inclusion in this review were:
Australia, Canada, Denmark, New Zealand, Norway, Poland, Sweden and Uruguay
Excerpt (p.15):
The key implementation challenges faced by some of the case study countries were the protracted length of the legislative process, opposition from stakeholders and the logistics of setting up and running a new or reformed pension system. Three main conclusions seem to flow from the experience of case study countries with regard to pension reform implementation: First, pension arrangements are both complex and critical for individuals and society as a whole. Changes ideally need to be debated thoroughly with the stakeholders involved, such as employees, employers and the pension industry. This takes time, but the benefits of building a consensus around the proposed changes are considerable. Secondly, unless existing systems can be used, it takes time to establish appropriate and robust administrative systems. The more complex the system and the greater the volume of business, the longer is the time required. Finally, three quite different sets of stakeholders need to be managed: individuals, both potential contributors and those who will be excluded from the scheme; employers; and the providers of pensions.

--------------------------------------------------------------------------------

Top Ten Facts on Social Security's 70th Anniversary
by Jason Furman
Revised August 11, 2005
PDF version of this report (57K, 5 pages)
"President Franklin Delano Roosevelt signed the Social Security Act on August 14, 1935, which established a basic compact between generations: younger workers would contribute payroll taxes, and retired workers would have a more secure retirement. Presidents from Dwight Eisenhower to Ronald Reagan have signed landmark Social Security reforms to expand Social Security to provide disability insurance (1954), index Social Security benefits so people would not become poorer as they grew older (1972), and reform Social Security to add decades to its life (1983). As Social Security approaches its 70th anniversary on August 14, 2005, it remains one of the most successful and effective, as well as one of the most popular, of government programs. It provides a universal benefit that is progressive and lifts millions of people out of poverty. It also provides extremely valuable social insurance, providing payments to those who need them most — including workers who become disabled, families whose breadwinner dies, dependent spouses, and retirees who live to a very old age and outlive their assets. (...) As policymakers contemplate changes in Social Security, they should keep in mind 10 important facts about the program:
Fact #1: About half of the elderly have incomes that, without Social Security, leave them below the poverty line. Social Security lifts 13 million elderly Americans above the poverty line.
Fact #2: Social Security does more to reduce poverty among children than any other government program.
Fact #3: Social Security is more than just a retirement program: one-third of Social Security beneficiaries receive survivors benefits or disability insurance benefits. 10 million beneficiaries are adults below the age of 65, and 4 million are children.
Fact #4: For two-thirds of the elderly, Social Security provides the majority of their income. For one-third of the elderly, it provides nearly all of their income.
Fact #5: Social Security provides benefits to 48 million Americans, with the average beneficiary receiving $10,500 per year.
Fact #6: Social Security is especially beneficial for women.
Fact #7: Social Security is particularly important for African Americans.
Fact #8: Social Security provides an especially good deal for Hispanics.
Fact #9: Social Security provides a progressive benefit that keeps up with increases in the cost of living.
Fact #10: Social Security is an extremely efficient program, with administrative costs equaling only 0.6 percent of retirement and survivors benefits."

Source:
Center on Budget and Policy Priorities (CBPP)
"...one of the leading organizations in the country working on fiscal policy issues and issues affecting low- and moderate-income families and individuals. The Center specializes in research and analysis oriented toward policy decisions that policymakers face at both federal and state levels. The Center examines data and research findings and produces analyses designed to be accessible to public officials, other non-profit organizations, and the media."

Retirement Pension Reforms (Old Age Security, Canada Pension Plan)

La réforme des pensions de retraite (Sécurité de la vieillesse, Régime de pensions du Canada)

Retirement Pension Reforms
(Old Age Security, Canada Pension Plan)

La réforme des pensions de retraite
(Sécurité de la vieillesse, Régime de pensions du Canada)