To the Editor:
Recent reports in the media are suggesting that any changes to the Canada Pension Plan (CPP) will benefit those currently retired or those near retirement. This is not the case. It is important to clarify that enhanced CPP benefits would be phased in over a period of 40 years and would not be retroactive. Any additional benefits would be paid for by employees with higher mandatory payroll deductions throughout each worker’s career. More dollars would come off workers’ paycheques for CPP and this would reduce the financial flexibility many young workers and low-income earners may need.
As well, increasing the mandatory matching contributions of employers at a time when the economy is already fragile may cause businesses to cut jobs.
The Government of Saskatchewan recognizes that a portion of working Canadians may need to save more for their retirement. That’s why our government supports increasing retirement savings through voluntary options such as the Saskatchewan Pension Plan, RRSPs, tax-free savings accounts, and the new Pooled Registered Pension Plans, expected to be available in Saskatchewan later this year.
Voluntary savings ensure that workers and employers continue to have the freedom and flexibility to establish their own financial priorities. Our government values the role that the CPP plays at its current levels in providing basic benefits to working Canadians upon retirement. We encourage all Saskatchewan people to consider their retirement income needs and set aside additional savings through the voluntary options available.
Kevin Doherty
Minister of Finance
