VANCOUVER — Federal and provincial finance ministers meet in Vancouver today with proposals to revamp the Canada Pension Plan the starring feature of the talks.
At stake is how to better help Canadians who aren't — or won't be — in good financial shape once they retire.
But how and when to help them is an issue that's provoked much debate.
Ontario wants a deal now, but Saskatchewan and B.C. have suggested the economic conditions aren't right for a change that's likely to lead to an increase in the premiums that come off workers' paycheques. Quebec has said it doesn't expect a final deal at today's meeting.
That premium hike is why some critics of the expansion call it a payroll tax, a common refrain from the Opposition Conservatives who oppose an across-the-board expansion of the program.
The ministers could agree to that or to more selectively target those Canadian workers who are the least likely to save.
Federal research has suggested that group tends to be under the age of 30, earns between $55,000 and $75,000 (although some estimates are higher), and either doesn't save enough or lacks access to a workplace pension plan.
The federal and provincial governments are looking at a possible increase in the $55,000 cap on annual maximum pensionable earnings, which would result in both higher premiums and increased pension benefits.
Resolving the issue could be harder than changing the Constitution. A change to the CPP requires provinces representing two-thirds of the population; a constitutional amendment needs seven provinces representing at least half.
The legislation, as currently written, also states that any reforms can only be implemented three years after a federal-provincial agreement is reached.
