Conservative pension plan too risky: New Democrats

Government bypasses stable CPP/QPP to push unproven private plan

OTTAWA – The Conservatives’ plan to for the country’s pension system will be cold comfort to Canadians looking for a secure retirement future, according to New Democrat Pensions Critic Wayne Marston.

“The government is asking Canadians to leave their retirement security up to the whims of the financial markets,” said Marston. “And the crash of 2008 showed us exactly how risky the Conservatives approach can be.”

Under the Conservative’s Pooled Registered Pension Plan, the value would be unpredictable at retirement – with any risks borne by individual pensioners.

A better way, say New Democrats – along with seniors groups, policy experts and actuaries – is to improve pensions through expanding the highly successful Canada Pension Plan and Quebec Pension Plan (CPP/QPP).

“The CPP is the most secure, portable and low-cost pension reform option available to Canadians - and it’s inflation-protected,” said NDP Deputy Pensions Critic Alain Giguère. “For the Conservatives to bypass it completely and set up a privately administered, voluntary plan – risks people’s pensions and just doesn’t make any sense.”

“With 11 million working Canadians without a workplace pension, we need a stable solution that will work for all Canadians,” added Marston. “A phased-in doubling of the CPP could have provided security to this generation and the next. Instead, the Conservatives have once again put the needs of the banks ahead of those of Canadians.”