Letter: CPP reforms aim to support seniors in need, encourage workers to save

Planned expansion of the Canada Pension Plan is about improving retirement outcomes for today’s and tomorrow’s workers

Re: The state rescues your retirement, Tom Fletcher, Oak Bay News, Sept. 14

The planned expansion of the Canada Pension Plan (CPP), taking effect in 2019, is about improving retirement outcomes for today’s and tomorrow’s workers.

So, too, is the Trudeau government’s decision to restore the eligibility ages of the Old Age Security programs to 65 from age 67 that was to take place in a decade or more from now.

For current retirees, the 2016 federal budget commits to increase the value of the Guaranteed Income Supplement for low-income single seniors; to increase the income support for senior couples living apart; and to develop a new Seniors Price Index so that federal income benefits to the elderly keep pace with the costs of living they face.

Contrary to what the column said, registered retirement savings plans and tax-free savings accounts were not curtailed by the federal budget.

Expansion of the CPP will be relatively modest, the result of much discussion and study by governments of all political stripes and by think tanks and other groups over the last several years.

After the changes are phased-in over the next 10 years, the retirement benefit will replace one-third of a person’s earnings rather than existing rate of one-quarter of earnings.

The ideas behind these reforms are to support those current seniors in need of income assistance and to encourage working Canadians to save for their retirement through this federal-provincial public plan and by other means beside.

Michael J. Prince

Oak Bay

 

Just Posted

Have you seen Apple’s camera cars cruising your ‘hood?

White Subaru mapping cars seen around Saanich Peninsula

Downtown Victoria sees 10-fold increase in condo units since 2016

A report by the Downtown Victoria Business Association details ongoing construction trends

International migration drives population rise in B.C.

No joke, provincial population topped 5 million by April 1

Mainly sunny skies in Tuesday’s forecast

Plus a look ahead at your week

Wind gusts turn away cruise ships from Victoria harbour

Weather conditions make docking difficult for large ships

Video shows fireworks shot at swan in Alberta

Alberta Fish and Wildlife is investigating the incident in Grande Prairie

Companies need clearer rules on workplace relationships, study suggests

One-third of Canadians have been in love at work, and half say no policy on the matter exists

WITH VIDEO: Two endangered marmots released on Vancouver Island

With three new pups born in May, two more Vancouver Island Marmots… Continue reading

Surrey RCMP raises Pride flag amid din of protesters

There were about 30 protesters on either side, and 20 Mounties doing crowd control

Should B.C. get rid of Daylight Saving Time?

The province wants to know, as state governments down south make the move

Air Canada reviewing how crew left sleeping passenger on parked plane

In a Facebook post, the woman said she woke up ‘all alone’ on a ‘cold dark’ aircraft

Canadians crash out of Women’s World Cup in 0-1 loss to Sweden

Canada missed a chance to tie the game on a penalty shot

Four-year-old boy assaulted at B.C. soccer game

It happened at a weekend tournament in Ashcroft

B.C. residents rethinking summer road trips due to gas prices

63 per cent of respondents reported gas prices are impacting their day-to-day finances

Most Read