Thoughts on BC Politics and More

... last I argued then that a good share of it could be safely withdrawn to be distributed in the form of lower premiums, increased benefits, or dividends to governments that could be re-invested in public goods like infrastructure, the military, and education. In hindsight, I was wrong—but only in degree. Most of the fund is surplus, or superfluous, and can be safely paid out. What was once a model of financial prudence is now bleeding Canada white. Crunching the numbers: We’re not raiding the CPP, the CPP is raiding us  Bear with me. It’s hard to believe, yet it’s right there in the most recent official report on the CPP. Done every three years by the chief actuary, these reports set out the financial projections underpinning the CPP. They’re chock-full of data. They tell us, for instance, if the CPP is sustainable over the long term. But they don’t tell us the size of the financial reserve needed to safely make it so. Do we need a reserve of $100 billion? $500 billion? More? It’...

As a former top Finance Department official, Susan Peterson played a key role years ago in creating the stable Canada Pension Plan that we see today. But even she was surprised by the numbers. A few weeks ago, the Canada Pension Plan Investment Board (CPPIB) revealed that 12 per cent of the CPP's assets are invested in Canada — its lowest level ever. The largest chunk of its $714-billion fund, 47 per cent, is currently invested in the United States — its highest level ever. Peterson doesn't think she's the only one surprised ... CLICK HERE for the full story

New tax measures, and changes to existing ones, will begin affecting Canadians in 2024. But tax experts say the effects on most individuals are likely to be minor, unless they're high-income earners. GST/HST exemptions, the elimination of deductions for some short term rentals, new alternative minimum tax rates and changes to Canada Pension Plan (CPP) contributions are among the new measures coming in 2024 ... CLICK HERE for the full story

On Friday, Finance Minister Nate Horner used what was billed an “Alberta Pension Plan engagement update” to announce the United Conservative Party Government will “pause” its effort to persuade Albertans the province should take over more than half the assets of the Canada Pension Plan and use them to set up a homebuilt version ... ...on Thursday the Legislature passed legislation requiring a referendum to be held before the province could exit the CPP – although the bill doesn’t say the government has to accept the results of the vote ... CLICK HERE for the full story

Alberta Premier Danielle Smith wants her province to leave the Canada Pension Plan and start one of its own. Smith argues an Alberta-only plan would be fairer to Albertans and save money. The premier bases this claim on a report put together by the consulting firm LifeWorks. If Alberta withdrew from the CPP, the firm claims, the province would be entitled to an asset refund of $334 billion. That’s more than half of CPP’s asset base ... CLICK HERE for the full story

USED WITH PERMISSION At the beginning of this month I referenced higher Canada Pension Plan (CPP) premiums, that will increase from 4.95%, up to 5.95%, gradually between 2019 and 2023, resulting in lower take home pay for many Canadians.   If you have been watching television, it is possible that you may have even come across commercials from the CPP Investment Board that state “you started saving for retirement with your first paycheque.” I have received complaints over the fact that a true savings account is one that citizens can voluntarily withdraw from, whereas CPP contributions do not offer this flexibility.  I have also received inquiries and comments about CPP and other federal government retirement programs.   And I have heard many comments over those recent increased CPP premiums. One common complaint, is that if a person does not live to 65, or not long after, the amount that can be transferred to spouse, after a lifetime of CPP contributions, is ...

REPRINTED with permission : My question this week is a simple one ... are you concerned by having your net take home pay reduced by increased CPP premiums ? It was not long into the new year when a citizen shared with me an email ,they received from their employer, stating Statutory Canada Pension Plan (CPP) " deductions are reset for the new year so you will notice a decrease in your net take home pay starting in January ”. The citizen asked if this information was correct and if so, what are the reasons for it? As I reported back in July and October of 2016,  the Trudeau Liberal government raised CPP premium rates. The changes mean that beginning this year and for every year until 2023, the mandatory CPP contribution rate will be gradually increase from the former rate of 4.95% up to 5.95% in 2023. It is true that in most situations your net take home pay will be less because of this CPP increase. Likewise, for an employer the cos...