Major changes to CPP

Local MP Ed Fast is quoted as saying “the CPP is perfectly sustainable and fully funded. There are no plans to make any changes there.”

I read, with some dismay, a Feb. 3 Abbotsford news article on federal pensions, in which local MP Ed Fast is quoted as saying “the CPP is perfectly sustainable and fully funded. There are no plans to make any changes there.”

In fact there are several major changes already in process to CPP.

One of the major changes is the amount that one can collect at age 60.

For example, as of Dec. 31, 2011 one could take their CPP pension at age 60 with a 30 per cent reduction in benefits.

This early penalty started to rise as of Jan. 1, 2012, culminating in five years to a 36 per cent reduction.

This amounts to a 20 per cent increase to the deduction rate.

This is comparable to the tentative idea of raising the Old Age Security benefit age of 65 to 67, which is currently causing such fervor with the public.

Meanwhile the government has quietly gone about making major changes to CPP.

How did this happen with so little public awareness?

I am not happy with the above changes and would like to see it  remain the same.

People may not be able to afford to wait to 65 or age 70 , they may not even be around to collect these benefits, even if they are paid at a higher rate.

Ian Mackenzie