Women and Pensions

Studies suggest women are at a significant disadvantage to men when it comes to pensions.

Women still earn less than men, and are expected to shoulder unpaid caregiving responsibilities. Women are also concentrated in non-standard, poorly-paid jobs, which offer little hope for a decent pension.

This issue sheet offers the good and bad news for women and pensions. It explains how the CLC’s “Retirement Security for Everyone” campaign can deliver the change women deserve.   Read More...

Low-income seniors

Our plan to boost the incomes of poor seniors through an immediate 15% increase in the Guaranteed Income Supplement (GIS) has several benefits. First, we ensure that no senior, current or future, will ever retire into poverty (since public pensions are adjusted for inflation).

Secondly, money put into the GIS will be spent locally by seniors for their essential needs. Such direct spending into the local economy represents an important and effective form of economic stimulus at a time when it is badly needed.

Finally, workers who worry about looking after their parents in retirement can rest assured their parents will be able to provide themselves with the basics. This is especially true for workers facing their own retirement years with elderly parents and loved-ones to care for.

Small business

Contrary to what some might think, small businesses have responded positively to Labour’s plan to boost public pensions, in particular our plan to double CPP benefits. Even the Canadian Federation of Independent Business (CFIB) has endorsed CPP reform as a goal.

They recognize that CPP is the best value for money given it’s low administration costs, portability and security. Small business owners will benefit personally from CPP expansion, plus they will have another incentive to retain valuable employees. Topping up CPP benefits with a workplace pension plan would become a more affordable option for most small businesses.

Young workers

Younger workers stand to gain the most through our plan to improve pensions and retirement income. They would contribute more to the CPP for longer in their career, and therefore earn a richer CPP pension.

What this means is that today’s young workers could count on a CPP pension that would be portable across jobs, insured against inflation, and protected against market slumps. Federal pension insurance would ensure young workers get the pension they’ve earned. Most importantly, young Canadians could access jobs freed up because older workers, thanks to improved retirement income security, would not need to prolong retirement plans, as is the case today.

Labour’s plan to reform Canada’s retirement income system will make a real difference for younger workers who have been urged to “fend for themselves”
by bankers and life insurance companies seeking to extract decades of fees from RRSP investment in mutual funds.

Workers of Colour

Workers of colour and recent immigrants face an after-tax earning gap of 13.3%. The income gap between workers of colour and recent immigrants, compared to what white workers earn, is 28%.

Aboriginal workers

Unemployment among Aboriginal Canadians is double the rate of the rest of the population. “Registered Indians” in particular have the lowest labour force participation rate of any Aboriginal group (54%) despite consistently higher birth rates.

Workers with disabilities

Nearly half (46.7%) of people with disabilities are not in the labour force. Those with jobs are over-represented in part-time and casual work, which is the case for all workers from equality-seeking groups and which translates into lower incomes.

Union members with pension plans

Our plan to double CPP benefits comes at no extra cost to union members with decent pensions. This is particularly true for union members in the public sector who might see no benefit at all from paying higher CPP contributions.

Most pensions are “integrated” with the CPP, which means union members will not pay more in pension contributions. They will simply get more of their pension from the CPP, or from the public side of their pension plans instead of the private side.

Unlike the CPP, most workplace pensions aren’t protected against inflation, nor are they portable across jobs. In the private sector, unions face the constant fear of losing pensions through employer under-funding or bankruptcy – something that would never happen to the CPP. Increasing the public side of pension plans boosts their stability, which is good for everyone.

The added bonus for union members is that the CPP requires smaller contributions (due to low administration costs) to produce the same return for retirement income. This makes the extra money required to support the private side of the pension formula available for other investments, which is welcome news for unions at the bargaining table.
Medicare freed up resources that unions used to bargain into private health insurance for their members. Reforming retirement security to offer all Canadians a higher retirement income from public pensions works the same way. The money that currently goes into the pockets of the banks, insurance companies and investment brokers remains with workers and employers.

Non-union workers

Labour’s plan for retirement security for everyone will help average Canadian workers without union protection. Don’t believe the critics who say it’s only about protecting “union” pension plans.

Our plan to double CPP benefits would raise the floor of our pension system from $11,000 per year to $22,000 per year. This benefits the 93% of Canadians who are covered by the CPP. It also offers a source of retirement income that is portable across jobs, portable across provinces, insured against inflation, and backed up by the government. Few workplace plans can match what the CPP delivers today.