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Liberals promise to boost pensions

Posted by on Mar 30, 2011 in Retirement | 0 comments

By Jessica Murphy, Parliamentary Bureau, Toronto Sun

March 30 2011

VANCOUVER — Liberal Leader Michael Ignatieff has proposed three new measures to boost Canadian pensions.

On Wednesday, he said a Liberal government would expand the benefits provided under the Canada Pension Plan and offer Canadians a new voluntary, tax-deductible retirement savings option backed by the CPP.

“One of the most important things (families) need is security in retirement,” he told reporters jammed tightly into a pharmacy.

The proposed gradual increase in CPP premiums and benefits would have to be negotiated with the provinces and territories, two-thirds of which would have to be on board.

But there’s no guarantee the provinces will comply — and Ignatieff skirted the issue at the morning news conference.

“The federal government has to step up and provide leadership on pensions,” he said in response to a reporter’s question about provincial involvement.

Along with the CPP reform, the Grits propose a second voluntary contribution — the Secure Retirement Option — that would give workers the choice to save an extra 5-10% of their pay in a CPP-backed retirement fund. Employers would also have the option to contribute.

The party says the proposal is a low-cost and secure way to help Canadians save for retirement. Some 75% of Canadians who work in the private sector have no private pension plan.

The Liberals would also give a $700-million annual boost to guaranteed income supplements.

READ MORE

Also see Michael Ignatieff’s video

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