Presented by Ken Georgetti on Tuesday, 9 March 2010

(Check Against Delivery)

Sisters and brothers – many thanks for inviting me to speak to you on what is not only one of the most important issues facing us today – but one that will be critical to working people for decades to come – the future of our pensions.

I salute the Windsor and District Labour Council and your president Dino Chiodo for holding this forum – because we desperately need a national debate about protecting and enhancing our pensions.

And without significant improvements in pensions for all Canadians, we face the prospect that working people who have helped build this country will retire into poverty . . . and despair.

Sadly, there was no indication in last week’s federal Throne Speech that Conservative Prime Minister Stephen Harper even recognizes the pension problem – let alone has any ideas for the solution.

And yet – we live in an age of new ideas – ideas that can change the way we live, how we work and the way we think.

For example, just 10 years ago no one had heard the word “ipod” – but Apple had an idea for a tiny digital media player.

Since then Apple has sold over 220 million ipods – and everyone knows what they are now.

The Canadian Labour Congress has an idea too – but it’s not the labour version of an ipod – it’s an idea that we believe will be far more important to all Canadians.

The CLC wants to double the benefits of the Canada Pension Plan.

It may seem dramatic – but in fact phasing in a doubling Canada Pension Plan benefits over 7 to 10 years can easily be achieved – and should be a government priority.

The Canada Pension Plan already covers 93% of all Canadians, union or non-union.

So improving the CPP is the simplest and most effective way to dramatically improve the retirement security of all Canadians.

The CPP is portable – no matter where you work, or how many times you change jobs, CPP benefits follow you.

And it’s universal – all workers pay into it – whether employed or self-employed.

Why now? Because in the past two years we’ve seen the tragic results when pension plans are not properly regulated or protected.

Many pension plans have drastically reduced benefits because of the economic meltdown caused by corporate greed and lack of government regulations.

Greedy employers and their mouthpieces like the CD Howe institute, the Canadian Federation of Independent Business and the Canadian Taxpayers Federation want to strip public sector workers of their modest pensions – which they have contributed to all their working lives.

And those same bad employers are pushing workers into inferior defined contribution pension plans, where income is dependent on the high risk market – instead of the defined benefit pension plans we have always fought for.

Defined contribution plans are very much like individual Registered Retirement Savings Plans – RRSPs – which have also been severely hit by the financial crisis – putting individual contributors’ retirement at risk.

Only one-third of Canadian taxpayers made any contribution to an RRSP in 2008.

And a new poll suggests that in 2009 only 1 in 3 Canadians put any money into an RRSP – with most who didn’t invest saying it was because of a lack of money.

What’s clearly needed is a better idea – the CLC’s idea – to double the Canada Pension Plan benefits – to a maximum of $1635 a month – so that no worker is forced to retire into poverty.

We already know that the CPP and other social programs don’t provide seniors with enough income.

Even the maximum amounts now available through the Canada Pension Plan, Old Age Security and the Guaranteed Income Supplement fall short of the pre-retirement income people need to maintain decent living standards.

There are 1.6 million seniors — about 35% of those receiving public pensions — who live below the poverty line.

That’s not good enough for the people who have built this country.

The CLC believes that doubling the Canada Pension Plan benefits is the answer.

Here’s how: Right now both workers and employers pay 4.95% of salary into the CPP.

Under our plan, CPP contributions would gradually increase by only 2.85% of salary for workers and employers.

These increased contributions would effectively double the average earnings replaced by CPP pension benefits, to a maximum – in 2009 dollars – of $1,635 per month.

This is about preparing for the future – the full effect of this reform will benefit young workers the most, because they would be paying higher premiums over a longer period of time.

But older workers will also see a benefit as they prepare for retirement.

It may seem surprising that such a low increase in contributions can finance a doubling of CPP pension benefits.

It’s possible because the CPP structure is so cost-efficient, it achieves more with less.

Improving the Canada Pension Plan is the single best way to protect the retirement security of all workers.

It’s completely portable – if you change jobs, the CPP goes with you.

And with defined benefits guaranteed by the government under the CPP, workers are not left to the risks of the financial markets.

Will the CLC plan work?

You bet!

The Canadian Labour Congress plan has even been costed by Bernard Dussault, who was the Chief Actuary of the CPP and Old Age Security program from 1992 to 1997.

But convincing the government to begin doubling the Canada Pension Plan won’t be easy.

The banks and financial institutions that make big profits from RRSP sales already oppose the idea and will fight to stop us.

The Canadian Taxpayers Federation and the CFIB will fight this and call any increase in premiums a tax grab.

Nonsense!

These same people would foolishly rather have seniors live in poverty – and not be able to afford to shop at the very businesses that make up the CFIB.

It’s time to tell them that Canadians see through their nonsense.

And we know that with your help, we can win.

Just remember – the labour movement in Canada helped create unemployment insurance and public Medicare.

We persuaded our members – and then the general public – that these programs would help all Canadians.

Now we’re going to do it again – to help create a Canada Pension Plan that all of us can count on!

There are two other major changes the CLC is calling for – to increase the Guaranteed Income Supplement – part of Old Age Security benefits – by 15% immediately to lift seniors out of poverty.

And we need a federal system of pension insurance.

We insure our lives, our homes, our vehicles, our jobs – but not our pensions!

That doesn’t make any sense – and it’s time for that to change.

So there is the CLC plan for retirement security – it’s simple, it’s cost-effective and it can be done.

Now we have to go out and convince all union members and the public that pension reform is needed – immediately.

Thank you and please support our pension reform campaign.