Following years of advocacy by the labour movement, today workers are celebrating an announcement that Canada’s federal and provincial governments will expand the Canada Pension Plan (CPP) for all working people.
As the percentage of Canadians with a workplace pension dwindles, this universal expansion of CPP will significantly improve retirement security for the majority of Canadians that have no other pension.
The CPP expansion campaign was spearheaded by the Canadian Labour Congress while affiliated unions like The Society played a pivotal role in mobilizing their members to advocate for this reform. Society president Scott Travers was in Ottawa earlier this spring to meet with members of parliament and press the federal government for progress on CPP expansion.
“Too many Canadians today are struggling in retirement and change is long overdue. Even though we had asked that the CPP be doubled, we appreciate that this will be the first increase in the plan’s history, and one that will benefit all Canadians,” said Canadian Labour Congress President Hassan Yussuff in a statement released following the historic CPP announcement.
To pay for the 33% increase in the annual payout of CPP, workers’ monthly contributions to the fund will increase by $7 beginning in 2019 with additional increases each year until 2023.
While CPP applies to all workers, the Guaranteed Income Supplement and Old Age Security programs continue to benefit low-income seniors.
