An increase in Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) benefits would negatively impact the country’s economy and lead to significant job losses, according to a Canadian Federation of Independent Business (CFIB) report released this morning.
CFIB is kicking off a campaign to prevent increases to CPP/QPP benefits, saying the cost to Canadian workers and employers is too high. This is in reaction to a planned June meeting of the country’s finance ministers to discuss possible increases.
One of the options being considered by the ministers, said the CFIB, would cost employees up to $1,100 more per year each and force wages down by 1.5%.
“There’s been a lots of talk about increasing benefits, with very little mention of the cost,” said CFIB vice-president and chief economist Ted Mallett.
“The short-term impacts are substantial, yet benefits could take decades to be fully implemented.”
The report examined the proposed CPP/QPP changes and found that:
- employees would pay up to $1,100 more per year in CPP/QPP premiums;
- employers would pay up to $1,100 more per year, per employee;
- self-employed workers would pay up to $2,200 more per year;
- wages would be forced down by 1.5%; and
- debt-to-GDP ratios for federal and provincial governments would jump by 2% and 1.2%, respectively.
CFIB’s campaign includes an online petition and a premium calculator.
Dan Kelly, CFIB president and CEO, said, “With a CPP and QPP increase, all signs point to trouble. Wages go down while premiums go up.
“It kills jobs, increases government debt. Businesses are hurt, workers are hurt. There is no upside to hiking CPP and QPP at this time.”
