Is Canada on the Right Path?
Jack Mintz, Palmer Chair in Public Policy at the University of Calgary, wrote an op-ed for the National Post, Affluent Canadians don’t need more government help in providing security for their old age : With the federal-provincial-territorial Ministers of Finance meeting coming up in December, the semi-annual build-up for CPP reform comes to a head. The latest is a proposal by Prince Edward Island to expand the CPP for “modest” income recipients. Although it is not easy to find a public version of the PEI proposal, my understanding is it would double the pensionable earnings limit, increase the replacement rate from 25% to 40% for incomes between $26,000 and $52,000 and bring in a new replacement rate of 15% for earnings between $52,000 and $104,000. Employer and employee payroll taxes jump to 3.1% of earnings over the $26,000 threshold. And to make the benefits fully funded, the benefits are increased over time so that the young are not paying for new benefits paid to an older