OTTAWA – The recession has exposed serious flaws in Canada’s retirement savings system and has placed at risk the pension plans that many Canadians have paid into during their entire careers, New Democrat leader Jack Layton said today.

“Canadians are worried. They have seen their RRSP savings shrink or had their pensions collapse when their employers went under,” said Mr. Layton. “People who worked their whole lives, paid taxes and trusted in government to ensure income security in their later years are instead facing uncertain futures with inadequate resources. We need to offer people better protection.”

At least 11 million Canadians have only their public pensions to rely on for their retirement, and, at current levels, those pensions offer benefits that are far from adequate.

The measures Layton announced today are part of a comprehensive retirement-security plan that will benefit all Canadians. It was developed after months of cross-country consultations undertaken by New Democrat Pensions Critic Wayne Marston.

The features of the policy announced today are:

• Increasing the Guaranteed Income Supplement (GIS) to end seniors’s poverty.
• Strengthening the Canada Pension Plan/Quebec Pension Plan, in consultation with the provinces, with a goal of doubling benefits.
• Developing a national pension insurance program, funded by employer pension plans, that will guarantee pensioners up to $2,500/month in the event of bankruptcy and plan failure.
• Creating a national facility to adopt workplace pension plans of companies in bankruptcy or in difficulty and keep them operating on a going-concern basis.

These measures are on top of the New Democrats' long-standing advocacy for Workers First protection in legislation, to protect pensioners in bankruptcies.

What they are saying: Support growing for New Democrats’ reforms to retirement security

“Give Jack Layton credit … The day after Nortel pensioners and their union supporters protested on the lawn of Parliament, the New Democratic Party leader was ready with specific proposals, aimed at ensuring that pensioners aren't stranded when their companies go bankrupt, or their private pension plans become insolvent through no fault of their own.”
– Susan Riley, Ottawa Citizen, 23 October 2009

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Resources

Canada’s Pension Crisis [6]

Making CPP Truly Effective [7]

Increasing GIS, Reducing Poverty [8]

Protecting Your Pension [9]