The government of Manitoba has released a list of changes it would like to see made to the agreement in principle (AIP) for an expanded Canada Pension Plan (CPP).
When the federal and other provincial finance ministers signed an AIP to expand the CPP earlier this month, Quebec and Manitoba held back. Now Premier Brian Pallister has released a four proposals he says would make the plan “more responsive to the realities of the generation to come.”
In particular, Manitoba wants:
- to eliminate the claw back of guaranteed income supplement payments for widowed seniors’ CPP survivor benefits.
- to index the death benefit inflation, on the grounds that the maximum one-time payment of $2,500 has remained the same since 1997
- to extend the phase-in period for the increase in contributions related to enhancing the year’s maximum pensionable earnings (YMPE) from two years to four years,
- to increase survivor and disability benefits in proportion to the enhancements outlined in the current approach, which is assumed but not explicitly stated in the AIP.
“CPP is a key pillar to retirement security for Manitobans and Canadians, but it is not the entire solution,” comments Manitoba’s Finance Minister Cameron Friesen. “This is a once-in-our-lifetime chance to modernize the CPP, to make it more compassionate and more responsive to the changing needs of Canadians.”