Burrill concerned changes to CPP may negatively affect women and persons with disabilities

December 9, 2016

HALIFAX, NS – NDP Leader Gary Burrill is concerned that proposed changes to the Canada Pension Plan (CPP) will negatively affect parents, particularly women, and people with disabilities.  Burrill has written to Nova Scotia’s Finance Minister Randy Delorey, asking Mr. Delorey to pressure the federal Finance Minister to protect pension benefits at their meeting next week.

At issue is the federal government’s Bill C-26, which amends the Canada Pension Plan Act to incorporate the recent agreement reached with the provinces to enhance Canada Pension Plan benefits.

Under the current rules, parents who take time off to raise their children can use what is known as a “drop-out” provision to ensure that this time out of the workforce does not negatively affect the calculation of their CPP benefits.  Similarly, a person who received disability benefits can use a drop-out provision to ensure that this does not unduly reduce what they are entitled to under CPP.  However, as Bill C-26 now stands, those drop-out provisions would not be applied to the newly enhanced portion of CPP.

“Women and people with disabilities disproportionately rely on public pension plans like CPP.  To make changes to pensions in 2016 that negatively impact women is unthinkable,” says Nan McFadgen, President of CUPE Nova Scotia.

“We are being told that the goal of these changes is to enhance CPP benefits.  Doing this in a way that fails to help women and persons with disabilities is unacceptable,” Burrill said. “Mr. Delorey has already been involved in discussions with the other finance ministers that have led to these proposed changes.  If he believes these changes should not negatively affect women and people with disabilities, it is time for him to say so.”

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For more information please contact Kyle Buott at (902) 266-2068.