Recently the Federation has written to Prime Minister Trudeau to encourage work on enhancing the Canada Pension Plan (CPP). As you may know, the provincial finance ministers, including BC’s, met on June 20, 2016, and signed an agreement in principle for enhancing the CPP with features that include:
· a larger CPP pay out
· a higher earning limit that counts toward CPP
· a gradual 7 year phase-in that starts in 2019
· an increase to the Working Income Tax Benefit to help low-income earners
· tax deductibility for the enhanced portion of employee CPP contributions.
However, the BC government refused to approve the major changes at the July 15, 2016, deadline. Premier Clark has opted instead to have public consultations. If BC does not sign off on the major changes, it would destroy the entire deal for all Canadians. We wrote Premier Clark to encourage her to support the CPP enhancements, but we need your help.
We have found the relevant links for information here:
You may email your request to the Clark government to support the CPP enhancements to:
Some supporting thoughts:
· 75% of the cost of the increased benefit is paid for by investment income.
· Tax money is saved in the long run because it will decrease the need for low income supplement, the Guaranteed Income Supplement (GIS), which is paid from current operating funds.
· Studies show the Canadian economy will benefit from the additional savings for retirement income.
· Bank of Canada Governor Stephen Poloz has stated the CPP enhancement will help provide retirement security for Canadians and lift consumer confidence.
BC teachers and all workers in BC will benefit from this increase in pension at retirement and must become engaged. We are asking you and your members to take a look at the material in the web links above and write an email to support the CPP enhancement. The more citizens that write in, the greater the impact on this engagement process being used by the BC government. We do not want the BC government to yield to pressure from organizations to back away from the agreement. The government will hear from those organizations opposed to the enhancements very soon and may then shut down the website, so sooner responses are better.
Victor Choy, Assistant Director
Income Security Division – Pensions
British Columbia Teachers’ Federation