Pension- OAS- GIS- CPP
On January 30, 2012 the government announced changes will be made to qualify for the old age security (OAS) to any senior who has lived 10 years in the country from 65 to 67 years of age.

If the age limit is increased, more seniors between the age of 65 and 67 will rely on social assistance from the province.  

Ninety (93%) of Canadians who are covered by CPP, have no pension plan. The CPP offers a source of retirement income that is portable across jobs across the provinces insured against inflation, and backed up by the government.

The government’s 2011 Actuarial Report indicates that the OAS will account for 2.37% of GDP in 2011, 3.16% in 2030, but then fall below today’s level to 2.35% in 2060.  

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Recommendations:

The Coalition encourages the government to:


  1. Lobby the federal government to not increase the age limit of the old age security from 65 to 67.
  2. Increase the guaranteed income supplement by 15% to lift all seniors out of poverty.
  3. Increase the CPP premiums by 60% over seven years.
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Background Summary:

The current system is clearly affordable and will be a smaller share of the budget than it is today. To double the CPP benefit would raise the floor of the pension plan for everyone.

Past experience shows that gradually phased-in and modest increase in CPP premiums would not have significant impacts on economic growth or employment.

The added bonus the CPP requires smaller contributions (due to low administration costs) to produce the same return for retirement income. Unlike the CPP most private pension plans aren’t protected against inflation, nor are they portable across jobs. In the private sector there is constant fear that the pension is under-funded or bankruptcy-something that would never happen to the CPP.

The plan has been researched, costed and certified by Bernard Dussault former chief actuary of the Canada Pension Plan.