Wrong decision on CPP

TheStar.com – opinion/letters – Re: No CPP improvements coming in near term, Business, Jan. 6
Published On Fri Jan 07 2011.    Ken Georgetti

Ted Menzies, the new junior finance minister, says he will focus on Pooled Retirement Pension Plans (PRPPs) rather than improving the Canada Pension Plan. He is making the wrong choice and we cannot let him get away with it. By acting now to expand CPP benefits on a fully funded basis, the federal government could have seriously addressed the future retirement security of our children. The CPP is a real universal and portable pension plan that every working Canadian contributes to along with employers.

The CPP is an efficiently-run pension plan that delivers the security of predetermined benefits at a very low cost. Instead, the government prefers PRPPs, a private sector scheme that will reward banks, mutual fund and insurance companies for years of bad behaviour. By charging the highest management fees in the world that can eat up as much as 50 per cent of the value of an investment over 40 years, the financial industry has been gouging consumers and pillaging their hard-earned savings for decades. Canadians see through this scheme and know that expanding the CPP is the better plan for them to save toward their future retirement.

Ken Georgetti, President, Canadian Labour Congress

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