SM Blog: » see older posts
- Wednesday August 18, 2010
-
Wake Up and Smellthe Benefits!
I will be presenting at the HRMAM Connect Conference on October 27th, 2010 - » Read More
- Wednesday July 7, 2010
-
CPP Increases Bad for Private Pensions
An increase to CPP will not help the average working Canadian retire more comfortably - » Read More
- Thursday June 17, 2010
-
Boomers on the Cusp
The insurance industry used to be all about answering the question ‘What if I die?’ – have I provided security for my family. Today, the question for many baby boomers is ‘What if I live?’ - » Read More
SM Benefits & Pensions:
CPP Increases Bad for Private Pensions
Posted by: Kevin McFadden
Given the current economic climate, it is unlikely that members of pension plans will see much increase in total pensions if the CPP is augmented. For affected employees who are not able to increase the total amount of income set aside for retirement, the higher employee contributions necessitated by an amended CPP will presumably come out of other current savings the employee is making. For employers who cannot afford the cost increase in their business, increased contributions to CPP may cause them to consider commensurate changes in their pension plans to carve out the additional CPP benefits from their plan, mitigating the cost impact. In short, the cost impact of extending CPP may come at the expense of other savings by employees and reduced levels of pension or other benefits provided by employers.