Whereas 1 the economic well-being of Canada’s retired population is being threatened by:
a. a significant increase in the number of retirees as the baby boom generation retires; and
b. ongoing low levels of activity in the economy, high unemployment, and the underfunding and/or the failure of increasing numbers of employer pension plans, leaving affected retirees without this income; and
c. the significantly reduced level of personal savings of the working-age employed population; and
Whereas 2 while it is generally assumed that retirees need about 70% of their pre-retirement income to preserve their standard of living in retirement, the Canada Pension Plan (CPP) alone is designed to replace 25% of average adjusted annual earnings up to a maximum (this amount changes yearly and is $48,300 for 2011); and
Whereas 3 the CPP is the favoured vehicle of delivery to increase retirement income because it is considered secure, reliable, cost-effective, and well-managed; and
Whereas 4 an expanded Canada Pension Plan (CPP) could provide an increased defined benefit pension related to earnings and years of contributions and would remain a public pension plan where risks are pooled to provide adequate benefits to all contributors; and
Whereas 5 these plan reforms are still in the design phase where no clear design has been chosen, except that the CPP seems the preferred vehicle of delivery; therefore be it
Resolved 1 that the National Council of Women of Canada adopt as policy retention of an expanded and sustainable Canada Pension Plan (CPP) with increased benefits for all contributors to ensure them a livable retirement with a defined, indexed, and secure pension; and be it further
Resolved 2 that the National Council of Women of Canada urge the Government of Canada to strengthen the Canada Pension Plan (CPP) by increasing benefits for all contributors to ensure them a livable retirement with a defined, indexed, and secure pension.
