Printer Friendly

Cut disincentives for older workers remaining in labour force--C.D. Howe.

TORONTO -- Major changes are required to the Canada and Quebec Pension Plans to eliminate fiscal disincentives to work for older workers or else the plans could face a significant shortfall in skilled workers in the coming decades says an article published by the C.D. Howe Institute.

In Follow Quebec's Lead: Removing Disincentives To Work After 60 by Reforming the CPP/QPP, Yvan Guillemette, a C.D. Howe Institute policy analyst, says the federal government should follow Quebec's lead in implementing changes to the CPP as those proposed for the QPP.

In particular, he supports the proposals

* to allow individuals to take their QPP retirement pension at age 60, even if they continue to work;

* to simplify the formula used to determine an individual's pension entitlement which would provide an additional incentive to older workers to continue to work since their maximum pension would not be lowered as a result of working in lower paid jobs in their older years, as it is now;

* allow contributions paid by older workers, who return to work after receiving a pension, to increase their pension up to the maximum amount payable by adding to their total insured earnings.

Finally, Guillmette believes a proposal to increase the actuarial adjustment factor used to increase the retirement pensions of those who retire after 65 years of age would provide "a clear incentive to delay retirement."

At the same time Canadian governments "should undertake a sweeping review of old age security programs to remove the remaining work disincentives" for older workers.
COPYRIGHT 2004 Community Action Publishers
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Income Security
Publication:Community Action
Article Type:Brief Article
Geographic Code:1CANA
Date:Jun 14, 2004
Words:254
Previous Article:Trillium Foundation Ontario 800-263-2887.
Next Article:Unionized male workers with disabilities earn better salaries.
Topics:


Related Articles
Taking a bullet for the Boss: employers in a tight spot financially are turning to their workers to help them out. The employers say they don't have...
The tax wilderness: how to restore a viable tax system.
A potential dividend from workforce ageing in Australia.
Industry representation, structural change and the older male worker in Australia (1985 to 2005).
Work in later life--opportunity or threat?
Transitional labour markets: experiences from Europe and Germany (1).
Increasing employment participation in Australia and how to finance it.
Labour market transitions and risks of exclusion.
Will older workers change their retirement plans in line with government thinking? A review of recent literature on retirement intentions.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters