2013.5 CANADA/QUEBEC PENSION PLAN DROP-OUT PROVISION FOR FAMILY/FRIEND CAREGIVERS
Whereas 1, The Canada/Quebec Pension Plan (CPP/QPP) provides a drop-out provision in its averaging formula for pension calculations for contributors who took time off from CPP/QPP contributions while caring for a child under the age of seven and earning low or no income.
Whereas 2, Women are most often the caregivers who were working and contributing to CPP/QPP but may need to leave the workforce for extended periods or permanently to care for a physically or cognitively dependent adult, including elderly parents.
Whereas 3, Because of reduced CPP/QPP contributions over their lifetime, eligibility for lower pension income through CPP/QPP disproportionately impacts long-time family/friend caregivers, most of whom are women, placing them at a financial disadvantage.
Whereas 4, Family/friend caregivers contribute billions of dollars of care to the economy yet are rarely acknowledged or rewarded for their efforts.
Resolved 1, The National Council of Women of Canada (NCWC) adopts policy support for a Canada/Quebec Pension Plan (CPP/QPP) caregiver drop-out provision, which would increase the actual pension based on CPP/QPP contributions by removing from the calculation the years spent out of the workforce while caring for dependent persons.
Resolved 2, The NCWC urges the Government of Canada to:
a. Provide a drop-out provision in the CPP/QPP calculation for family/friend caregivers who were required to leave the workforce for extended periods or permanently in order to care for a physically or cognitively dependent person.
b. Base this drop-out provision on the already existing formula used for contributors who took time out from CPP/QPP contributions while caring for a child under the age of seven.
