Michael Ignatieff

Harper government is not doing enough to protect Canadians pensions

Liberal Leader Michael Ignatieff today called on the Harper government to act on pension reforms that would help more Canadians to save for retirement and protect those who have lost pension income through bankruptcy.

“The Harper government has done little to safeguard the future for pensioners,” said Mr. Ignatieff. “The time is now for the government to step up and make saving for retirement easier and more secure for all Canadians.”

Liberal Seniors & Pensions Critic Judy Sgro, Finance Critic John McCallum and Senator Art Eggleton joined Mr. Ignatieff to present three pension reforms that need greater consideration from the Harper government:

• A Supplementary Canada Pension Plan (SCPP) to help Canadians save more

• Giving employees with stranded pensions following bankruptcy the option of growing their pension assets through the Canada Pension Plan

• Protecting vulnerable Canadians on long-term disability by giving them preferred status as creditors in case of bankruptcy

“Not enough Canadians are saving for retirement – which is why we need a hassle-free, safe and reliable way to save more,” said Mr. McCallum. “The Harper government should work with the provinces, pensioners, labour groups and the private sector to develop and implement an SCPP, which would allow Canadians to voluntarily invest extra funds in our trusted national pension.”

Supported by several provinces and pension experts, a national SCPP is one possible solution to the problem of low retirement savings. By providing an easy way for Canadians to put their extra savings towards future retirement income, an SCPP should be considered as part of reforms to the income security system that include Old Age Security and the Guaranteed Income Supplement.

“How many more Canadians whose companies have gone bankrupt have to see their pension savings evaporate before the Harper government acts?” asked Ms. Sgro. “We’re demanding that the Harper government give employees with stranded pensions the option of growing their pension assets through the Canada Pension Plan.”

This voluntary option would guarantee pension principal and ensure pensions aren’t locked in when businesses go bankrupt and market conditions are at their worst, protecting them from future market turmoil.

“Many Canadians on long-term disability lost everything when their employers went bankrupt,” said Senator Eggleton. “That’s why I plan to introduce a bill in the Senate that would, if passed, give the most vulnerable on long-term disability preferred status as creditors.”