Posted: Monday, 29 November 2010

Re: Calgary Herald

CLC president Ken Georgetti has welcomed editorial support from the Calgary Herald newspaper for a gradual doubling of Canada Pension Plan. “This is exactly what the labour movement has been advocating for more than a year,” Georgetti says. “We are pleased that the Calgary Herald sees the logic of our arguments. An improved CPP is far and away the best way to ensure that Canadians have enough money on which to retire. ”

The Herald published an editorial on November 27 in which it said that labour and other advocates have “presented a compelling argument for doubling the CPP benefit, which we endorse.”

The newspaper went on to say: “The CPP already covers almost all Canadian workers and thus spreads the risk and management fees. It is fully portable, offers guaranteed income to all retirees, and is the only risk-free investment broadly available to workers. Private RRSPs and employer pension plans have proven much riskier than initially billed. Those who are in company pension plans are likely in a defined contribution scheme, where the amount that goes in is predetermined, but the payout is based on how well the fund is invested and ultimately performs. Nortel workers know only too well how that worked.”

Georgetti says there is a growing consensus among elected leaders and academics that improving the CPP is the best way forward. The Canadian public is also firmly on side, with 78% of respondents in support of increasing CPP benefits, according to an October 2010 Environics poll. The financial services sector, which charges high fees on RRSPs and other investments, opposes increases to the CPP as does the Alberta government. But a CLC sponsored opinion poll shows that 73% of Albertans surveyed actually support increasing CPP benefits.

The Calgary Herald writes: “Alberta's opposition is a throwback to outdated thinking, with regards to individual choice and financial flexibility. Those Canadians who want to retire in comfort will still need more to live on than the CPP. But by raising the standard of living for all retirees, today's taxpayers are saved from shouldering the burden of tomorrow's seniors living in poverty. In the long run, it ensures people pay their own way . . .”

Canada’s finance ministers meet in Kananaskis, Alberta on December 19-20 to discuss pension reform. Georgetti says he is confident that the ministers will follow through on their promise to improve the Canada and Quebec Pension Plans.