Manitoba offers ideas for CPP reform after rejecting federal proposal

The Manitoba government, one of two provinces to reject the terms of theCanada Pension Plan reform, hasreleasedits proposed enhancements.

"Our proposals would make the CPP more responsive to the realities of the generation to come," said Premier BrianPallister, adding the strongfederal-provincial desireto amend the plan "gives usa unique opportunity to get this right."

'There are opportunities to make the CPP better, and we shouldn't miss that opportunity.'

8 years ago

Duration 2:44

The Manitoba government, one of two provinces to reject the terms of the Canada Pension Plan reform, has released its proposed enhancements.

"This is a once-in-our-lifetime chance to modernize the CPP, to make it more compassionate and more responsive to the changing needs of Canadians," said ManitobaFinance Minister CameronFriesen.

The vast majorityof Canada's finance ministers reached an agreement in principle last weekto revamp the CPP.Only Manitoba and Quebec declined to agree to the terms.

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• Canada Pension Plan deal with provinces faster, easier than expected

Under the agreement, set togo into effect in 2019, an average Canadian worker earning about $55,000 will pay an additional $7 a month in premiums in 2019. That would increase to $34 a month by 2023.

Once the plan is fully implemented, the maximum annual benefits will increase by about one-third to $17,478.

Manitoba offers ideas for CPP reform after rejecting federal proposal

8 years ago

Duration 2:06

The Manitoba government, one of two provinces to reject the terms of the Canada Pension Plan reform, has released its proposed enhancements.

Manitoba's wants its provincial and federal colleagues to consider:

• Low-income single seniors byeliminating the claw back of guaranteed income supplement payments for widowed seniors' CPP survivor benefits.
• Indexingof the death benefit to the rate of inflation.Currently the CPP death benefit provides a maximum one-time payment of $2,500 to the estate of a deceased CPP contributor. This maximum was set in 1997 and frozen.
• Extension of the time periodfromtwo years to fourforhigher income earnersto ramp up CPPcontributions.
• Committingto a comprehensive review of the other CPP benefits.While it is assumed all CPP benefits, including survivor and disability benefits, will be increased in proportion to the enhancements outlined in the proposed reforms, "this should be explicitly stated" in the agreement.

Friesen says CPP is only onepart of retirement security and the plan must be more responsive to the needs of Canadians. Hesaidhe has spoken to a number of his counterparts in otherprovinces and there is support for Manitoba's ideas.

There will be a review coming up of CPP later this year and theManitoba government would like some of its ideas to be part of thosemeetings.