Retirement Pension Reforms
| La réforme des pensions de retraite
|
|
- 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 |
NOTE: this page covers pension
reforms only.
---
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). Harpers
argument that deep cuts are required to keep the program afloat deserves closer
attention, even though hes 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 wont
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.
---
* 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
---
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
---
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
OTTAWAPrime Minister Stephen Harper is vowing
major transformations including changes to Canadas
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 Canadas 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
---
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 Documents:
* Income Tax Legislative Proposals in
Respect of Pooled Registered Pension Plans and Explanatory Notes
http://www.fin.gc.ca/drleg-apl/prpp-rpac1211-eng.asp
December 14, 2011
* Backgrounder: Key Measures Included
in Income Tax Legislative Proposals in Respect of Pooled Registered Pension
Plans
http://www.fin.gc.ca/n11/data/11-134_1-eng.asp
December 14, 2011
* News Release: Harper Government Introduces
the Pooled Registered Pension Plans Act
http://www.fin.gc.ca/n11/11-119-eng.asp
November 17, 2011
Source:
Finance Canada
http://www.fin.gc.ca/fin-eng.asp
Pension experts call for expansion of
the CPP
http://www.ctv.ca/CTVNews/Canada/20111213/cpp-pension-expansion-appeal-111213
December 13, 2011
OTTAWA A group of pension experts, including a former chief actuary
of the Canada Pension Plan, is calling on Canada's finance ministers to commit
to expanding the CPP. In an open letter Tuesday to
Finance Minister Jim Flaherty and his provincial and territorial counterparts,
the group said a growing body of research indicates that many Canadians will
likely have inadequate savings to maintain their standard of living in retirement.
(...)
The other signatories included
- Bob Baldwin, an expert adviser for the Ontario Expert Commission
on Pensions;
- Keith Horner, a pensions consultant and a former federal Finance
Department official;
- Jonathan Rhys Kesselman, the Canada research chair in public finance
at Simon Fraser University;
- Monica Townson, an economic consultant who served on the Pension
Commission of Ontario, and
- Michael Wolfson, the Canada research chair in population health modelling/populomics
at the University of Ottawa.
Canada's finance ministers are to meet in Victoria next week.
Source:
CTV.ca
http://www.ctv.ca/
Also from CTV:
National Affairs: Paying for federal pensions
http://www.ctv.ca/CTVNews/Canada/20111213/cpp-pension-expansion-appeal-111213
Click the video link for an eight-minute video featuring C.D. Howe Institute
President and CEO William Robson and Larry Rousseau, executive
vice president for the national capital region of PSAC, debating whether Ottawa
can afford to pay for the pensions of federal employees.
From the
Canadian Centre for Policy Alternatives (CCPA):
Pooled Registered Pension Plans not the
answer to pension crisis: study
http://goo.gl/FYUgj
December 7, 2011
OTTAWAThe newly proposed Pooled Registered Pension Plan (PRPP) program
will do nothing to solve Canadas pension crisis, says a study released
today by the Canadian Centre for Policy Alternatives (CCPA). The
study, by pension expert and CCPA research associate Monica Townson, provides
an analysis of the PRPP program and argues that expanding the Canada Pension
Plan (CPP) would provide better retirement pensions to virtually all Canadians
Complete report:
Pension Breakdown:
How The Finance Ministers Bungled Pension Reform (PDF - 788K, 34 pages)
http://goo.gl/iwE3z
- includes a ten-page chapter entitled "Barriers to CPP Expansion"
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 Canadas leading progressive voices in public
policy debates.
The Pooled Registered Pension Plan
From
Finance Canada:
Harper
Government Introduces the Pooled Registered Pension Plans Act
November 17, 2011
Legislation was introduced today in Parliament, implementing the federal portion
of the Pooled Registered Pension Plan (PRPP) framework. Since PRPPs are particularly
applicable to small business, Minister Menzies delivered his remarks at a
small radio station without a company pension plan. (...) PRPPs are the outcome
of several years of cooperation, research and consultations by Canadas
finance ministers on the best ways to ensure the long-term strength of Canadas
retirement income system. (...) Provincial enabling legislation will need
to be introduced for the framework to become fully operational.
Related Documents:
* Backgrounder:
The Retirement Income Landscape in Canada
* Backgrounder:
How Pooled Registered Pension Plans Will Address Gaps in Canadas Retirement
Income System
* Helping
Canadians Save for their Retirement with Pooled Registered Pension Plans
(includes links to seven more online related resources)
In December 2010, Canadas Finance Ministers
agreed on a framework for defined contribution Pooled Registered Pension Plans
(PRPPs) to provide Canadians with a new, low-cost, efficiently managed, portable
and accessible savings vehicle that will help them meet their retirement objectives.
Source:
Finance Canada
---
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, wont match the CPPs low cost and will
lack the CPPs 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 Canadas retirement income security
crisis. Canadas 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 arent getting CPP. Why?
By Gordon Pape
August 21, 2011
If this comment offends some readers Im 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 todays world, from budgeting to handling
debt.
The federal governments 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.
[ Related links : http://www.canadiansocialresearch.net/fedbkmrk.htm#financial_literacy ]
(...) Ignorance and/or indifference costs Canadians
billions of dollars every year thats 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 articles
in the media:
Ottawa
must honour millions in unclaimed pension benefits
February 11, 2011
When Canadians are neglecting to collect benefits to which they are entitled,
governments should take that as a sign that there is a financial literacy
gap and make an effort to close it. That means they should be doing more to
contact the 150,000 people who qualify for, but are not receiving, the Guaranteed
Income Supplement, which is only available to the lowestincome seniors. They
need to find out why another 160,000 eligible seniors are not collecting their
Old Age Security benefits.
Source:
Vancouver Sun
Evidence
of financial illiteracy?
Thousands fail to collect government benefits
By Jonathan Chevreau
February 9, 2011
After 18 months, the Task Force on Financial Literacy has delivered a 106-page
report (86 if you dont count appendixes) to federal Finance Minister
Jim Flaherty. (...) There are 30 main recommendations, beginning with the
call to appoint a national Financial Literacy Leader reporting to Mr. Flaherty.
It wants to make financial literacy an essential skill in the
governments Essential Skills Framework and wants all the provinces and
school boards to jump aboard. (...) It also urges the creation of a single
source website for financial literacy and recommends that financial
firms and regulators intensify their efforts to combat fraud. (...)
Low take-up of government benefits
The report shows some interesting stats on the need for financial literacy
when it comes to taking up government benefits. It says 160,000 eligible seniors
dont get Old Age Security ($1 billion worth); 150,000 dont get
the Guaranteed Income Supplement, and 55,000 arent getting the Canada
Pension Plan. Also, the take up for the Canada Education Savings Grant (CESG)
is just 40% while the median RRSP contribution represents only 6% of total
eligible room. Thats my definition of being financially illiterate
failing to take free money when its available.
Source:
Financial Post
Billions
in government benefits unclaimed by Canadians: task force
By Andrew Duffy
February 9, 2011
Billions of dollars worth of government benefits are going unclaimed by Canadians,
according to a federal task force on financial literacy. The task force, which
reported Wednesday, said the government should simplify its programs and application
forms to ensure more Canadians benefit from the financial support to which
they're entitled. (...) A research report prepared for the task force examined
why some government programs have such poor "take-up" rates. Those
rates are considered an important measure of financial literacy. The report
concluded that language and poverty often present barriers, particularly when
the programs or application forms are complex. "Lower-income Canadians
face distinct financial literacy challenges in being aware of and accessing
the very government programs that are targeted to them," concluded researcher
Richard Shillington.
Source:
Vancouver Sun
Ensuring
a Strong Retirement System, Support for Provinces
and Territories While Moving Towards Budget Balance
December 20, 2010
The Honourable Jim Flaherty, Minister of Finance, today released the following
statement at the close of his meeting with provincial and territorial Finance
Ministers and ministers responsible for pensions: We had a very good
meeting. Id like to thank my provincial and territorial counterparts
for their contribution to what was a candid, open and productive discussion.
Im particularly pleased to announce
that we reached agreement on a framework for the introduction of a new kind
of pension plan, called the Pooled Registered Pension Plan, or PRPP. This
new private-sector retirement savings vehicle will improve the range of retirement
savings options available to Canadians by providing a low-cost retirement
savings opportunity for employeeswith or without a participating employerand
the self-employed."
Source:
Canada News Centre
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 cant 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. Flahertys 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 wont 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:
Flahertys
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 economistsworking in universities, the labour movement,
and activist research organizationshave 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 Canadas 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 retirementmostly
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.
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.
---
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)
|
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.
(...) Todays 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 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
-----------------------------
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.]
---------------------------
|
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 QPPs 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 Canadas 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:
Actuarial Report (21st) on the Canada
Pension Plan
As at 31 December 2003
Tabled before Parliament on December 8, 2004
(posted December 8, 2004)
Executive
Summary (PDF file - 24K, 3 pages)
Report
without Appendices (PDF file - 706K, 47 pages)
Complete
Report (PDF file - 972K, 128 pages)
Source:
Office of the Superintendent
of Financial Institutions
----------------------------------------------------------------------------------------
Canada
Pension Plan - Statute
Canada
Pension Plan Regulations
Source:
Department of Justice
----------------------------------------------------------------------------------------
Canada Pension Plan Investment Board
----------------------------------------------------------------------------------------
Federal-Provincial
Review of The Canada Pension Plan
News Release
January 9, 2003
"The Canada Pension Plan (CPP) is financially sound and is on track to
provide retirement pensions in the future, federal and provincial ministers
of finance announced today following the conclusion of their financial review
of the CPP."
Backgrounder
Source:
Finance Canada
Hidden
agenda behind the attack on the CPP: study
Press Release
February 14, 2001
Critics of Canada's public pension system are engaging in scare tactics, a
prominent pension expert charges. In a new study Pensions Under Attack: What's
behind the push to privatize public pensions, released today by the Canadian
Centre for Policy Alternatives, independent economist Monica Townson
says talk of a "demographic time bomb" and inter-generational warfare over
pensions are deliberate attempts to undermine public confidence in the Canada
Pension Plan.
Source :
Canadian Centre for Policy Alternatives
A
Primer on Federal Social Security Contributions (Canada)
By
Philippe Bergevin, Economics Division
August 27, 2007
HTML
version
PDF
version (82K, 4 pages)
"Social security contributions are increasingly
recognized by governments as an important source of revenues with which to finance
expenditures on social security programs, such as government-sponsored pension
plans and employment insurance programs. In Canada, social security contributions
at the federal level contributions to the Canada and Quebec Pension Plans
and employment insurance premiums totalled $39 billion in 2005-2006..."
Table
of Contents:
* Overview (Employment Insurance - Canada/Quebec Pension Plan)
* Pros and Cons (Equity - Efficiency - Administration and Compliance) * International
Context
Source:
Virtual
Library
[ Parliament
of Canada ]
The
Social Security Debate in the United States
18
August 2005
By Marc LeBlanc, Economics Division
[PDF
version - 111K, 19 pages]
Table of Contents:
* Introduction
* Origins
and Development of Social Security in the United States
--- Origins
---
Key Developments
*Current Systems
* Proposed Reforms
* The Social
Security Debate
--- Is Social Security in Crisis?
--- Personal Savings
Accounts
------ Ownership
------ Investment
------ Transition Costs
--- Addressing Social Securitys Actuarial Deficit
------ Increase Revenue
------ Decrease Benefits
--- The Need for Political Consensus
* The Canadian
Experience
* Conclusion
Source:
Parliamentary
Information and Research Service Publications <<<=== Check this
out - links to 400 studies!
[ Parliament
of Canada ]
U.S. Social Security Reform Resources (in reverse chronological order)
|
POVERTY
DISPATCH (Institute for Research on Poverty - U. of Wisconsin) |
New from the
Center on Budget and Policy Priorities:
Policy Basics:
Top Ten Facts about Social Security on the Program's 75th Anniversary
August 13, 2010
[Social Security] remains one of the nations most successful,
effective, and popular programs. It provides a foundation of income on which
workers can build to plan for their retirement. It also provides valuable
social insurance protection to workers who become disabled and to families
whose breadwinner dies.
View the full report:
HTML : http://www.cbpp.org/cms/index.cfm?fa=view&id=3261
PDF : http://www.cbpp.org/files/PolicyBasics_SocSec-TopTen.pdf
(172K, 8 pages)
---
What the Trustees Report Shows about
Social Security
By Kathy Ruffing and Paul N. Van de Water
August 13, 2010
On August 5, the Social Security Board of Trustees issued the 70th annual
report on the programs financial and actuarial status. The trustees
report shows some mild deterioration in the programs short-term outlook
a finding that was widely expected and a mild improvement in
its long-run finances, thanks largely to the recent enactment of health reform.
View the full report:
HTML : http://www.cbpp.org/cms/index.cfm?fa=view&id=3262
PDF : http://www.cbpp.org/files/8-13-10socsec.pdf
( 240K, 6 pages)
---
Social
Security Keeps 20 Million Americans
Out of Poverty: A State-By-State Analysis
Paul N. Van de Water and Arloc Sherman
August 11, 2010
(...) Although most of those kept out of poverty by Social Security are elderly,
nearly a third are under age 65, including 1.1 million children. Depending
on their design, reductions in Social Security benefits could significantly
increase poverty, particularly among the elderly.
Source:
Center on Budget Policy and Priorities
The Center on Budget and Policy Priorities is one of the nations premier
policy organizations working at the federal and state levels on fiscal policy
and public programs that affect low- and moderate-income families and individuals.
The Center conducts research and analysis to help shape public debates over
proposed budget and tax policies and to help ensure that policymakers consider
the needs of low-income families and individuals in these debates. We also
develop policy options to alleviate poverty
--------------------------------------------
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."
See also (from CBPP):
Putting
the Social Security Debate in Context
- incl. links to : An Introduction
to Social Security - The Presidents Social Security Plan - Other Social
Security Proposals - Social Security Solvency - Accomplishments of Social Security
- Social Security by the Numbers
The
Saver's Credit:
Expanding Retirement Savings for Middle- and Lower-Income
Americans - U.S.
March 2005
"(Enacted
in 2001, the Saver's Credit ... provides a government matching contribution, in
the form of a nonrefundable tax credit, for voluntary individual contributions
to 401(k)-type plans, IRAs, and similar retirement savings arrangements. Like
traditional retirement savings plan subsidies, the Saver's Credit currently provides
no benefit for households that owe no federal income tax. However, for households
that owe income tax, the effective match rate in the Saver's Credit is higher
for those with lower income, the opposite of the incentive structure created by
traditional pension tax preferences."
Complete report:
The
Savers Credit:
Expanding Retirement Savings for Middle and Lower-Income
Americans (PDF file - 188K, 24 pages)
Source:
Retirement
Security Project
"The Retirement Security Project is dedicated
to promoting common sense solutions to improve the retirement income prospects
of millions of American workers. It is supported by The
Pew Charitable Trusts, in partnership with Georgetown University's Public
Policy Institute and the Brookings Institution."
Google.ca
Web Search Results: "Saver's Credit"
Google.ca
News Search Results: "Saver's Credit"
Source:
Google.ca
Columbia
Research Group Warns Against Ignoring Children in Social Security Debate
News
Release
February 24, 2005
"Social Security is the single largest support
program for children in the United States Although Social Security is the single
largest program that provides support to American children, the debate over privatization
has focused almost entirely on changes in benefits for retirees. (...) While it
is true that retirees and their spouses are the largest block of beneficiaries
from the program, over 5 million children in the United States benefit from Social
Security, either directly as beneficiaries or indirectly as members of households
that receive a monthly Social Security check. Of the 48 million people who currently
receive Social Security benefits, one in three is not a retiree; one in 15 is
a child under the age of 18."
Full
Report:
Whose Security?
What Social Security Means to Children and Families (PDF file - 90K,
10 pages)
Source:
National
Center for Children in Poverty (NCCP) - New York
Related NCCP Links:
New Policy
Brief and Fact
Sheet on Social Security and Children
"Although most discussions
of Social Security focus on its retirement benefits, the program is more accurately
described as a family insurance program. Social Security is the primary, if not
the only, source of life and disability insurance for many U.S. families, especially
those headed by younger workers. Social Security is responsible for keeping many
middle- and low-income children from falling into poverty when a parent dies or
becomes disabled."
Questions
for policymakers on Social Security and Children
"...questions
policymakers should consider before proposing changes in the program that would
affect the children and spouses of deceased workers, and disabled workers and
their families."
--------------------------------------------------------------------------------
From The White House:
State
of the Union Address
February 2, 2005
- incl. links to all related
material
On the subject
of Social Security:
Saving
Social Security for America 's Future Generations
More
on the Bush plan concerning Social Security (from The White House website)
Counterpoint:
State
of the Union: Key Policy Points
February 3, 2005
- President Tries
to Have It Both Ways: Using Misleading Numbers About A Social Security Crisis
While Advancing A Plan That Would Make Matters Worse
- New Details Indicate
Administration Social Security Plan Would Entail Several Trillion Dollars in Borrowing
- Details From the President on Private Accounts Not Likely To Answer Key Questions
- The Administrations Misleading $600 Billion Estimate of the Cost of Waiting
To Act on Social Security
- Overview of Other Social Security, Tax Cut, and
Deficit Issues in the State of the Union
Source:
Center
on Budget and Policy Priorities
Related Link:
State
of the Union Archive
- earlier years, right back to Truman (1945)
Source:
C-Span
----------------------------------------------------------------------------------------
Slashing
Social Security: Bush Plan Cuts Benefits
January 11, 2005
"President
Bush and certain members of Congress have made it clear that privatizing Social
Security is at the top of their agenda for 2005. The administration is likely
to advocate for Reform Plan 2 from the 2001 Report of the President's Commission;
this plan makes severe cuts to Social Security benefits. Social Security is a
successful insurance program that protects workers and their families against
the income loss that occurs when a worker retires, becomes disabled, or dies.
Privatization risks this programs success and endangers the many individuals
who rely on its funds for survival"
Source:
Moving
Ideas
----------------------------------------------------------------------------------------
How
has Britains privatization scheme worked out? Well, today, theyre
looking enviably upon Social Security
February 2005 issue of American
Prospect Online
"A conservative government sweeps to power for a second
term. It views its victory as a mandate to slash the role of the state. In its
first term, this policy objective was met by cutting taxes for the wealthy. Its
top priority for its second term is tackling what it views as an enduring vestige
of socialism: its system of social insurance for the elderly. Declaring the current
program unaffordable in 50 years time, the administration proposes the privatization
of a portion of old-age benefits. In exchange for giving up some future benefits,
workers would get a tax rebate to put into an investment account to save for their
own retirement. George W. Bushs America in 2005? Think again. The year was
1984, the nation was Britain, the government was that of Margaret Thatcher --
and the results have been a disaster that America is about to emulate."
Source:
American
Prospect Online
More American Prospect
Social Security Coverage:
Bush's House of Cards: The Privatization
Fraud
A Prospect Special Report
- links to over a dozen articles
on the Bush administration's Social Security privatization proposals
To access
this report, go to the American Prospect Online
home page and click on the Special Report: Saving Social Security link
in the left margin
----------------------------------------------------------------------------------------
A
Really Dumb Idea
November 2004
You can sum up Social Security
privatization in four words.
By Robert Reich
----------------------------------------------------------------------------------------
U.S.
Social Security privatization - from Disinfopedia
"U.S.
Social Security privatization is top of the neo-conservative agenda, following
the reelection of George W. Bush in the 2004 Presidential election. Central to
the campaign is an effort to persuade US voters that the existing Social Security
system is 'in crisis' [1] (http://seattletimes.nwsource.com/html/nationworld/2002146127_socsec09.html).
Meanwhile, Bush's allies at Fox News have been attacking AARP, which just happens
to oppose privatization of the system [2] (http://www.newshounds.us/2005/01/06/demonizing_aarp.php).
AARP has been in the administration's sights since at least early 2004, when an
organization with a misleadingly similar acronym, the Alliance for Retirement
Prosperity or ARP, was launched by Republican stalwarts."
Social
Security - Public Agenda Issue Guide
"Social Security, the federal
retirement system, is one of the most popular government programs in U.S. history
and nearly everyone supports keeping it solvent. But no consensus has emerged,
either in Washington or among the public at large, on what approach the government
should take. Despite the recent slowdown, the economic
boom of the past few years has helped push off the Social Security problem, with
the latest estimates showing the fund able to pay its bills through 2042."
Source:
Public
Agenda
"For over a quarter of a century, Public Agenda has been providing
unbiased and unparalleled research that bridges the gap between American leaders
and what the public really thinks about issues ranging from education to foreign
policy to immigration to religion and civility in American life."
----------------------------------------------------------------------------------------
Confusions
about Social Security (PDF file - 195K, 11 pages)
Paul Krugman
(Princeton University)
January 2005
"There is a lot of confusion in
the debate over Social Security privatization, much of it deliberate. This essay
discusses the meaning of the trust fund, which privatizers declare either real
or fictional at their convenience; the likely rate of return on private accounts,
which has been greatly overstated; and the (ir)relevance of putative reductions
in far future liabilities."
Source:
The
Economists' Voice - U.S.
(Editor: Joseph E. Stiglitz, Nobel laureate and
former Chief Economist of the World Bank)
----------------------------------------------------------------------------------------
Twelve
Reasons Why Privatizing Social Security is a Bad Idea
December
14, 2004
"Addressing Social Securitys potential long-term financing
challenges by taking the dramatic step of diverting its payroll taxes to create
new personal accounts will have drastic consequences for federal finances, future
retirees, and those who rely on the system the most. Learn more about twelve major
reasons why less costly and less painful reforms should be considered instead."
Source:
The
Social Security Network
[ The Century Foundation
]
Related Links:
Social
Security Administration (U.S. Government)
"Visit
the Social Security Administration Web site for publications and online resources
to help you understand your Social Security benefits, how to apply for benefits,
and the history of the Social Security program. You can also apply for benefits
online."
Social
Security Online
"The Social Security Administration's
Web site provides information about Retirement, Survivors and Disability Insurance
Benefits, and Supplemental Security Income.
AARP
Social Security Center
[AARP is a nonprofit, nonpartisan membership
organization for people over 50.]
"AARP maintains a special Social Security
Center on its Web site. Visit the center to test your knowledge and find answers
to some commonly asked questions about Social Security. You can also learn about
issues and challenges facing Social Security, and you can tell your elected officials
what you think about Social Security."
Four
questions (and answers) from AARP
- Is Social Security Broke?
-
Will Social Security be there for me when I retire?
- Couldn't I do better
investing the money on my own?
- But aren't I paying a lot of money now to
get a little money later?
National Committee to Preserve Social Security and Medicare
Center for Economic and Policy Research
----------------------------------------------------
Conservative/Libertarian
Counterpoint:
----------------------------------------------------
Project
on Social Security Choice
"The Cato Project on Social Security
Choice has developed a market-based alternative to the current Social Security
system. Rather than paying taxes into a government-owned fund, workers should
be allowed to redirect their payroll taxes into individually owned, invested accounts,
similar to 401(k) plans and Individual Retirement Accounts."
Source:
The
Cato Institute
["The Cato Institute seeks to broaden the parameters
of public policy debate to allow consideration of the traditional American principles
of limited government, individual liberty, free markets and peace."]
The
Heritage Foundation
"The Heritage Foundation is a research and
educational institute - a think tank - whose mission is to formulate and promote
conservative public policies based on the principles of free enterprise, limited
government, individual freedom, traditional American values, and a strong national
defense."
The Chilean Pension Model
What
do pensions in Chile have to do with Canadian social programs?
It's
all about the push toward private retirement pensions and the movement to dismantle
the Canada Pension Plan..
| "When
Augusto Pinochet ascended to power in Chile in 1973, for political and personal
reasons, he allowed a group of men trained at the University of Chicago School
of Business to assume control of economic planning and administration. These men
were disciples of the neo-liberal, neo-classical theories of Milton Friedman and
earned the name, the "Chicago Boys." With missionary zeal, they imposed
neo-liberalism on Chiles economic policies from 1975 to 1989. Nowhere in
history has this economic philosophy been pursued to the extent found in Chile
during these years. The performance of the economy of Chile during the tenure
of the Chicago Boys has been termed a "miracle," but the analyses on
which this term have typically been based, however, are from periods of economic
expansions that followed economic contractions. Analysis of the data from the
entire span of the Chicago Boys influence does not reveal dramatic growth
in the economy. Scions of the middle and upper classes, these men possessed little
compassion for the masses, and many segments of the population of Chile, in fact,
suffered economic losses during this time. The years of gain could not make up
for the losses incurred during the preceding years of depression-like conditions.
To advocate Chile as a model for ideal development in the Third World would require
discounting many of the negative ramifications of the economic policies of the
Pinochet regime. The Chilean experience demonstrates the limits of neo-liberalism
and, more importantly, illustrates the failure of the zealous and inflexible application
of economic theories to government." Source: An Analysis of Chilean Economic and Socioeconomic Policy: 1975-1989* Sherman Souther University of Colorado at Boulder May 1998 *as at January 9, 2005, this link is dead. I'm leaving it in because I like the excerpt. |
| Google
News search Results : "pensions, Chile,
reform" Google Web Search Results : "pensions, Chile, reform" Source: Google.ca |
Compare the conservative and liberal views from the selections below to see the pros and cons of privatized retirement pensions that some Canadians want to see in place of the Canada Pension Plan.
Views from the Left
The
Threat to Public Pensions
January 30, 2002
- presentation given
by pension expert and author Monica Townson to seniors in Toronto.
- sponsored
by the Ontario Society (Coalition) of Senior Citizens' Organizations and Canadian
Pensioners Concerned, Ontario Division.
Hidden
agenda behind the attack on the CPP: study
Press Release
February
14, 2001
Critics of Canada's public pension system are engaging in scare
tactics, a prominent pension expert charges. In a new study, Pensions Under
Attack: What's behind the push to privatize public pensions, independent economist
Monica Townson says talk of a "demographic time bomb" and inter-generational
warfare over pensions are deliberate attempts to undermine public confidence in
the Canada Pension Plan.
Source : Canadian
Centre for Policy Alternatives
EPI
work on Social Security
"EPI's Issue Guide
on Social Security, revised in February 2005, includes an introduction to Social
Security, frequently asked questions about Social Security privatization, links
to other organizations' research and more."
Source:
Economic
Policy Institute (EPI)
"The Economic Policy Institute is a nonprofit,
nonpartisan think tank that seeks to broaden the public debate about strategies
to achieve a prosperous and fair economy."
The Social Security Network (U.S)
Related Link:
Benefits
Canada
Pension Investment and Employee Benefits
| TIP:
How to Search for a Word or Expression on a Single Web Page Open any web page in your browser, then hold down the Control ("Ctrl") key on your keyboard and type the letter F to open a "Find" window. Type or paste in a key word or expression and hit Enter - your browser will go directly to the first occurrence of that word (or those exact words, as the case may be). To continue searching using the same keyword(s) throughout the rest of the page, keep clicking on the FIND NEXT button. Try it. It's a great time-saver! |