Layton says pension plans must adapt during economic crisis

OTTAWA – New Democrat Leader Jack Layton is reminding federal and provincial finance ministers to make pension reform a priority when they meet in Whitehorse this week. Layton made the request in an open letter to all provincial and territorial Premiers.

“Many Canadians have saved and contributed to retirement savings plans throughout their lives only to find their efforts of no avail as they see those savings evaporate for reasons beyond their control,” said Layton. “I urge you to work with the federal government and other provinces and territories to significantly strengthen the CPP/QPP”.

While 93 per cent of Canadians contribute to the CPP/QPP, their participation is needlessly capped at a level that falls short of guaranteeing a comfortable retirement income. The maximum income from a combination of OAS/GIS and CPP/QPP amounts to only 38 per cent of average pre-retirement income; most experts regard 50-70 per cent as desirable.

“Nothing justifies the current limit anymore when most Canadians do not have a workplace pension fund and only a minority of people can take advantage of private options such as RRSPs,” concluded the NDP leader.

Please find attached a copy of the letter.