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Expanding Canada Pension Plan Benefits or A Voluntary Supplement?

In September, NSGEU participated in a Federal consultation process on the addition of a Voluntary Supplement to the Canada Pension Plan.

The Voluntary Supplement to the CPP is being proposed by the Federal Government as another alternative retirement savings arrangement for Canadians. The Voluntary Supplement would be in addition to the CPP retirement benefit you currently participate in today. The Voluntary Supplement is intended for those Canadians who do not have access to a workplace pension plan. To be clear, this program is similar to a defined contribution pension plan or RRSP and not a defined benefit pension plan. Further, there is no requirement for Employers to contribute to this program.

The consultation process sought views on the ability for employees to voluntarily participate, the flexibility on the amount employees contribute, the ability to move the amounts contributed across jurisdictions and between employers, the role of Employers in the program, and how the money contributed would be invested.

The main theme of our response to the Federal Government was that they should look at expanding the Canada Pension Plan. The CPP is a defined benefit pension plan. It is designed to provide you with indexed monthly income upon your retirement. The CPP also provides benefits upon disability or death. It is cost shared between yourself and your employer.

The expansion of the CPP is part of the Retirement Security campaign from the Canadian Labour Congress. The CLC has proposed doubling the retirement benefit you receive from the CPP. This will allow more Canadians the ability to retire with dignity and security.

For more information on their campaign, please visit their website at: canadianlabour.ca/

 

 

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