While the budget delivered positive news for the economic growth of Canada (the federal finances are in better shape now than they were when the previous budget document was tabled in March), there was no additional update to the state of pension reform in Canada—which is concerning to some.
Working with the pooled registered pension plans is still part of the overall plan, but there was no mention as to next steps.
The Canadian Federation of Independent Business (CFIB) released a statement saying that, overall, it’s pleased with the budget; however, the group does have its concerns.
“While we welcome the ongoing work to introduce [PRPPs], we remain concerned with the reference to make “modest enhancements” to the Canada Pension Plan. Another tax increase is not the answer,” the group noted.
In March, when version one of the budget was released, Dan Kelly, senior vice-president, legislative affairs, with CFIB said, “The language around CPP was reasonably supportive around an increase. That was disappointing to us.” At the time, he added that the majority of CFIB’s 108,000 members are opposed to such an increase, “because it would essentially mean a mandatory payroll tax increase on small employers across Canada.”
Also, the CFIB expressed disappointment that more hasn’t been done to reduce the growing gap between public sector and private sector compensation, benefits and pensions.
“This was a missed opportunity to address the massive unfunded pension liability and deal with the ever rising cost of Canada’s civil service,” said CFIB president Catherine Swift. “This is really about fairness to taxpayers that will ultimately get stuck with the bill if not addressed soon.”
Related stories:
For a recap of the measures introduced in March, read: