Historic CPP Agreement Reached
On June 21, 2016 Canada’s finance ministers reached a historic agreement to expand the Canada Pension Plan (CPP). Unifor members have been part of an active campaign to improve the CPP, which has resulted in the first benefit increase in the plan’s 50 year history. Unifor urges the BC government to sign the deal to support the proposed expansion to our public pension program.
Read Unifor's letter to British Columbia Finance Minister Mike de Jong here.
Read Unifor’s CPP release here
We need an Enhanced CPP to provide retirement security for all Canadians
Everyone deserves the right to retire with dignity but more than 60 per cent of Canadians working today have no workplace pension plan.
Canada’s population is aging. Add the fact that most Canadians struggle to save sufficiently for retirement and the result is that today’s workers will face a significant decline in their standard of living in retirement.
Unifor believes the best way to help Canadians reach security after a lifetime of hard work is to increase retirement savings by expanding the Canada Pension Plan.
For more information visit www.abetterplanforall.ca
Why we need an enhanced Canada Pension Plan:
Most Canadians face significant challenges acquiring adequate retirement income. This is particularly true for young people, who bear the increase in both precarious employment and student debt. Many young people today will have a worse pension than their parents or grandparents. The need for action on retirement security is clear.
Retirement Savings Facts:
- 11 million Canadians do not have access to a workplace pension plan
- More than 75 per cent of private sector workers have no workplace pension plan
- Half of middle-income earners over age 45 are expected to see a significant decline in their standard of living in retirement--largely because of low pension coverage.
- The CPP has been extremely successful at providing retirement income for Canadians, offering portability across provinces and territories. But, benefits are set too low. The average CPP benefit in 2015 was $550. On average, women received just two-thirds of the benefit for men.
- Canada can afford to spend more on retirement income. We currently spend 4% of GDP on public pensions. The average in developed countries is 8% of GDP.
- Canadians struggle to save through inefficient and costly private retirement savings vehicles. Voluntary savings programs do not work; Canadians have over $885 billion in unused RRSP contribution room. Less than 9% of Canadians have contributed the maximum to Tax Free Savings Accounts.