Click amount to donate direct to CounterPunch
  • $25
  • $50
  • $100
  • $500
  • $other
  • use PayPal
Support Our Annual Fund Drive!
CounterPunch’s website is one of the last common spaces on the Internet. We are supported almost entirely by the subscribers to the print edition of our magazine and by one-out-of-every-1000 readers of the site.
FacebookTwitterGoogle+RedditEmail

New Canadian Government Breaks Promise of Pension Improvements

by

shutterstock_327595709

Toronto Star columnist Thomas Walkom has written a too-rare appreciation of where the new Liberal government in Canada is going with its promise to improve the Canada Pension Plan. Walkom published a hard-hitting column on the subject on December 23.

Amid much fanfare, Liberal Party leader Justin Trudeau made a promise on September 14 to boost the old age pensions of Canadians should his party win election on October 19. CBC reported: ” The Liberal plan includes a promise to restore the eligibility for old age security and guaranteed income supplement back to 65 [from the change to age 67 by the Harper Conservatives], a new seniors price index to make sure those benefits keep up with rising costs, a ten per cent boost to the guaranteed supplement for single low-income seniors, and a pledge not to cut pension income splitting for seniors.”

Trudeau made his announcement at a staged setting, surrounded by members of CARP (formerly named the Canadian Association of Retired Persons), an organization that has long campaigned for improvements to Canada’s public pension plans.[1]

In reality, the Liberal campaign promise was quite modest. It did not propose any increases to CPP benefit payments, the core of Canada’s three-tiered old age support system. In addition to CPP, Canada’s public pension plan includes the 65-and–older, universal Old Age Security payment and the 65-and-older Guaranteed Income Supplement.

The Liberals did not even propose reversing the punitive Harper measure, effective as of 2012, which raised the penalty for those opting to begin receiving CPP benefits as early as age 60.

Regardless, even the modest Liberal wish-list was placed on hold when provincial finance ministers met with their federal counterpart on December 21. The Star‘s Walkom reports, “They are not doing anything. They are not even bothering to make empty promises about doing anything. After hosting a federal-provincial meeting this week that dealt with the CPP, all Finance Minister Bill Morneau could provide was a promise to study the issue further and meet again.

“It was hardly an example of the federal leadership that Trudeau had promised during the election campaign.”

Yes, you read that right. Barely two months after winning election, and three months after promising to move heaven and earth to improve public pensions, Prime Minister Justin Trudeau and his Liberal government have shelved this key election promise on social policy. Morneau said on December 21 that finance ministers will return to discussion of the CPP in six months time. Or maybe they won’t. Whatever.

CPP legislation already requires a three-year waiting period to implement any changes that are approved.

CARP says in a December 29 press release that it is “outraged” by the government’s betrayal.

The early Liberal betrayal is the latest in a string of pension betrayals by Ottawa. This writer has written extensively about this, notably in this February 2014 article.

Pensions are not the only election promise where the Liberals are backing away. The Liberal government is failing to withdraw its fighter jets from the U.S.-led bombing of Syria. To add insult to injury for peace-loving Canadians, Defense Minister Harjip Sajjan made a five-day tour to the Middle East just prior to Christmas as part of planning for an expanded military role for Canada in the Middle East.

The lesson of the pension experience is that meaningful reforms cannot be expected of the new government in Ottawa. Extraordinary pressure through public education and protest will be required.

Petitions, loud and large public protests, public education—these were the tools used by the ‘Grey Power’ movement in 1985 to force then-Conservative Prime Minister Brian Mulroney to back off from plans to cut inflation protection for pensions. That pressure was not sustained and did not prevent later cuts by the Liberal governments of Jean Chretien and then the Harper Conservatives, nor enough to win significant improvements to CPP. But the example could serve us well today. It sure beats naïve hoping-against-hope, which is about all that can be said for the efforts of Canada’s trade unions on this file during the past five years.

One of the curious failings of the New Democratic Party campaign in the October 2015 federal election was how it was outflanked and outscooped by the Liberals on the pension issue. The party went into the election championing pension improvements, even if its proposals were short on detail. But this never featured largely in the NDP campaign, making it another issue where the party failed to distinguish its program from that of the Liberals.

Notes:
[1] The one province in Canada that operates its own public pension plan is Quebec. The Régime de rentes du Québec more or less mirrors the federal plan.

Roger Annis is a retired aerospace worker in Vancouver BC. He writes regularly for Counterpunch and compiles his writings on a ‘A Socialist in Canada’. He is an editor of the website The New Cold War: Ukraine and beyond. He can be reached at rogerannis@hotmail.com.

More articles by:

2016 Fund Drive
Smart. Fierce. Uncompromised. Support CounterPunch Now!

  • cp-store
  • donate paypal

CounterPunch Magazine

minimag-edit

September 26, 2016
Diana Johnstone
The Hillary Clinton Presidency has Already Begun as Lame Ducks Promote Her War
Gary Leupp
Hillary Clinton’s Campaign Against Russia
Dave Lindorff
Parking While Black: When Police Shoot as First Resort
Robert Crawford
The Political Rhetoric of Perpetual War
Howard Lisnoff
The Case of One Homeless Person
Michael Howard
The New York Times Endorses Hillary, Scorns the World
Russell Mokhiber
Wells Fargo and the Library of Congress’ National Book Festival
Chad Nelson
The Crime of Going Vegan: the Latest Attack on Angela Davis
Colin Todhunter
A System of Food Production for Human Need, Not Corporate Greed
Brian Cloughley
The United States Wants to Put Russia in a Corner
Guillermo R. Gil
The Clevenger Effect: Exposing Racism in Pro Sports
David Swanson
Turn the Pentagon into a Hospital
Ralph Nader
Are You Ready for Democracy?
Chris Martenson
Hell to Pay
Frank X Murphy
Power & Struggle: the Detroit Literacy Case
Chris Knight
The Tom and Noam Show: a Review of Tom Wolfe’s “The Kingdom of Speech”
Weekend Edition
September 23, 2016
Friday - Sunday
Andrew Levine
The Meaning of the Trump Surge
Jeffrey St. Clair
Roaming Charges: More Pricks Than Kicks
Mike Whitney
Oh, Say Can You See the Carnage? Why Stand for a Country That Can Gun You Down in Cold Blood?
Chris Welzenbach
The Diminution of Chris Hayes
Vincent Emanuele
The Riots Will Continue
Rob Urie
A Scam Too Far
Pepe Escobar
Les Deplorables
Patrick Cockburn
Airstrikes, Obfuscation and Propaganda in Syria
Timothy Braatz
The Quarterback and the Propaganda
Sheldon Richman
Obama Rewards Israel’s Bad Behavior
Libby Lunstrum - Patrick Bond
Militarizing Game Parks and Marketing Wildlife are Unsustainable Strategies
Andy Thayer
More Cops Will Worsen, Not Help, Chicago’s Violence Problem
Louis Yako
Can Westerners Help Refugees from War-torn Countries?
David Rosen
Rudy Giuliani & Trump’s Possible Cabinet
Joyce Nelson
TISA and the Privatization of Public Services
Pete Dolack
Global Warming Will Accelerate as Oceans Reach Limits of Remediation
Franklin Lamb
34 Years After the Sabra-Shatila Massacre
Cesar Chelala
How One Man Held off Nuclear War
Norman Pollack
Sovereign Immunity, War Crimes, and Compensation to 9/11 Families
Lamont Lilly
Standing Rock Stakes Claim for Sovereignty: Eyewitness Report From North Dakota
Barbara G. Ellis
A Sandernista Priority: Push Bernie’s Planks!
Hiroyuki Hamada
How Do We Dream the Dream of Peace Together?
Russell Mokhiber
From Rags and Robes to Speedos and Thongs: Why Trump is Crushing Clinton in WV
Julian Vigo
Living La Vida Loca
Aidan O'Brien
Where is Europe’s Duterte? 
Abel Cohen
Russia’s Improbable Role in Everything
Ron Jacobs
A Change Has Gotta’ Come
Uri Avnery
Shimon Peres and the Saga of Sisyphus
Graham Peebles
Ethiopian’s Crying out for Freedom and Justice
FacebookTwitterGoogle+RedditEmail