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canada pension plan application |
Five Reasons Why the Canada Pension Plan CPP is Unjust.1. Current Seniors get the Gold; Future Seniors (ie. Today's Young People) get the Shaft. If contribution rates rise to 14.2%, as suggested
by some in government, those now in their late 20's retire, they
will receive only 10% of what they contributed.*
Anyone with intellectual integrity must admit that the Canadian Pension Plan is not a social safety net for anyone born after 1960. It is an age-based discriminatory tax. For those born after 1960, the Canada Pension Plan is a social burden. For every five dollars that younger workers put into Canada Pension Plan they will get 1 dollar in return. This ratio will rise to 10-1 as the federal government increases Canada Pension Plan contribution rates. * Wendy Cox "Boomer bulge brings choice of
pension premium hikes or lower retirement benefits.", Vancouver
Sun, Jan. 20/1996)
2. Canada Pension Plan and OAS will Cripple Attempts to Pay off the Federal Debt In order to pay off the debt AND fulfill
current social spending expectations the government will have to
raise taxes or cut spending by about $74-billion a year over the
next 35 years. If the government chose to increase personal taxes
to handle these increases, personal income taxes would rise by 70%.
* Clearly these tax increases are not economically feasible, therefore
the government will have to cut social spending. If seniors insist
on maintaining current social spending expectations, there will
thwart all attempts to pay off debt created during their generation's
time.
*Richard Worzel, "How safe is your pension?" G&M April 18,1995 3. Passing on the Unfunded Liability to Our Young The challenge of paying off the accumulated
federal debt pales in comparison to Canada's current unfunded social
security liabilities of $1.7 trillion.* The Canada Pension Plan
constitutes a large part of this unfunded liability that is being
passed onto younger generations. Younger generations, who are being
told to pay for deficits created before they were born, are also
being told to pay the pensions of older historically economically
advantaged generations. This is intergenerational theft.*
* Michael Kane, "Delayed retirement a ticking 'time bomb'", Vancouver Sun, June 29, 1995 4. The Canada Pension Plan Contributes to Unemployment & Child Poverty:Unemployment: When employers must pay higher Canada Pension Plan premiums they have less money to hire employees. This creates unemployment for current generations. This unemployment effect also decreases the number of Canada Pension Plan eligible working years young works may claim thereby decreasing their future Canada Pension Plan benefits. See Canada Pension Plan rate hike will kill 200,000 jobs: report BY LUIZA CHWIALKOWSKA Child Poverty: Canada Pension Plan employee payments, and the unemployment effects of the Canada Pension Plan contribute to child poverty by lowering the income of working families. 5. Canada Pension Plan is designed to be unchangeable by future generations. It is more difficult to change the Canada Pension
Plan than parts of the federal constitution due to the requirement
that any changes need 2/3 of the provinces representing 2/3 of the
population. * As older generations become a larger portion of the
population they will hold a disproportionate control over the Canada
Pension Plan social safety net thereby ensuring that it will be
extremely difficult for any changes to be made to the Canada Pension
Plan. Even if over 50% of the population wanted to change the system,
seniors could effectively block changes.
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