Professional Institute of the Public Service of Canada

Professional Institute of the Public Service of Canada

June 14, 2010 16:40 ET

Pension Reform Discussions in PEI: Some Progress, But so Much More is Needed

OTTAWA, ONTARIO--(Marketwire - June 14, 2010) - Canada's Finance Ministers are moving in the right direction on pension reform but the steps they are proposing are still too modest to have any real impact, according to the Professional Institute of the Public Service of Canada (PIPSC).

The ideas brought forward by federal Minister of Finance Jim Flaherty – a modest increase in contributions to the Canada Pension Plan (CPP), enhancing financial literacy amongst Canadians and promoting measures aimed at helping the private sector and the self-employed obtain better pension plans - are all part of the overall solution. But they are not sufficient to address the pressing issue of retirement security for working Canadians or current or future retirees.

According to Institute Vice-President Shannon Bittman, "these measures demonstrate that the government is showing some concern for the needs of ordinary Canadians. However, while we are pleased that the government is recommending changes to the mandatory retirement income system, we do not feel that a "modest increase to CPP" is going far enough, fast enough. The longer the government waits to take any meaningful action the more expensive the solution becomes", added Bittman.

"Baby boomers will be retiring in unprecedented numbers in the near future and the failure to act more decisively today may lead to a pension crisis tomorrow, which would force the government to substantially increase social program funding to prevent retired Canadians from sliding below the poverty line. Our legacy to the next generation should not be high taxes and a crippling debt load".

The Institute remains committed to working with the federal government to study and implement the measures necessary to ensure that all Canadians enjoy peace of mind in their retirement.

The Professional Institute of the Public Service of Canada represents some 57,000 professionals across Canada's public sector.

Contact Information

  • Pierre Villon
    (613) 228-6310 extension 2228 or (613) 794-9369 (cell)