Typical family losing out on $3,110 per year, further undermining push
for CPP/QPP premium hike ahead of tomorrow's Premiers' meeting
TORONTO, Nov. 14, 2013 /CNW/ - If government workers were compensated at
private sector norms, Canadian families would have an extra $3,110 per
year to put towards their own retirement, according to analysis
released today by the Canadian Federation of Independent Business
These findings come in advance of tomorrow's meeting of Canada's
Premiers in Toronto, where hiking Canada Pension Plan and Quebec
Pension Plan premiums is expected to be discussed. Taking into account
wages and benefits, federal, provincial, and municipal government
employees are compensated between 25 to 42 per cent above the private
sector. If they were compensated at private sector norms, Canadians
could save $27 billion annually or $3,110 per family (where both
parents are working) or $1,555 per worker.
"It's hard for Canadians to buy the argument for higher payroll taxes,
when our governments have created a two-tiered pension system, where
the majority subsidize the nest eggs of the minority," said CFIB's
executive vice-president Laura Jones. "While small business owners
agree on the need to help Canadians to save for their retirement, they
reject the argument that the only solution is to hike payroll taxes on
employers and their employees."
There is growing evidence of the negative impact that an increase in
mandatory CPP/QPP premiums would have on Canadians, including:
Respondents to a recent CFIB member survey in Ontario rejected the idea
of a separate mandatory Ontario Pension Plan. 65% said such a move
would force them to freeze or cut salaries, and 42% said they would
have to reduce staff; and
CFIB analysis of the model being proposed by PEI Finance Minister Wes
Sheridan for a mandatory CPP/QPP hike premium suggests it would result
in loss of 500,000 person years of employment and a 1% drop in wages.
"Even polling done by public sector unions tells us that a majority of
Canadians who are struggling to save for their retirement simply can't
afford to," added Jones. "Hiking payroll taxes won't help them, but
give government a pass on addressing overly generous public sector
wages and benefits."
CFIB is Canada's largest association of small and medium-sized
businesses with 109,000 members across every sector and region of the
SOURCE: Canadian Federation of Independent Business (CFIB)
For further information:
To arrange an interview with Laura Jones, please contact Gisele Lumsden at 416-222-8022 or email@example.com and visit CFIB All signs point to trouble campaign site cfib.ca/cpp-qpp.