As the government moves forward on enhancements to the Canada Pension Plan, critics are raising concerns about the absence of a dropout clause for parents who temporarily stop working in order to care of their children.
The current CPP allows parents to exclude time away from work during child-rearing years when calculating their contributions. It also includes a general dropout clause for Canadians who have lost their jobs or returned to school. The provisions protect people in those positions from getting a reduction in their monthly payments by not counting years of low or no contributions against them.
Have your say: Should the enhancements to the CPP provide a dropout clause for people who temporarily stop working?
But the expanded pension plan, which will involve separate calculations from the current CPP, doesn’t include such provisions, which means parents on leave won’t benefit as much from the enhancements.
According to CBC News, the NDP raised the issue with the federal government last year during discussions about the enhancements. And while the Liberals had previously said the topic would be up for discussion among provincial leaders before the end of 2016, the final bill didn’t include a dropout clause.
Read: CPP enhancements receive final sign-off
Last week, Finance Minister Bill Morneau said any more changes to the expanded plan, including the dropout clause, would have to wait for a regular review of the CPP. It’s unclear, however, when the review will occur.
The issue is the topic of Benefits Canada‘s weekly online poll. What do you think about the absence of the dropout clause in the CPP enhancements? Should the government include such a clause as a measure to provide equity or has the government already done enough by boosting the CPP in the first place? Don’t forget to have your say.
Last week, the online poll asked whether it’s a good idea for wellness benefits such as smoking-cessation programs to include a financial incentive. Is that type of benefit a welcome addition or should employers stay out of employees’ personal choices?
Among respondents, 42 per cent said employers should get involved in every aspect of an employee’s health, whether it’s a personal choice or not; 52 per cent said employers should include smoking-cessation aids in a benefits plan without attaching a monetary element to quitting smoking. A further six per cent of respondents felt employers should stay out of wellness areas when it comes to an employee’s personal choices.
Read: Staples Canada’s $750 incentive to quit smoking
