http://www.theglobeandmail.com/news/pol ... e30532203/
Jun 21st, 2016 12:31 am
Jun 21st, 2016 12:53 am
Jun 21st, 2016 1:21 am
Jun 21st, 2016 1:27 am
You may be better off in America with that mindset.gqbluez wrote: ↑Im really not sure how I feel about this. As it is I don't factor in any potential CPP revenues into my retirement plan. The fact that they are now going to be pulling more money out of my paycheck to fund something I may or may not be able to benefit from in the future is rather annoying.
From your perspective (OP) we can spend more of what's leftover but honestly I do save, I have RRSP's that I contribute to regularly, I have a TFSA that I contribute to regularly, I have a company Pension (DC) that I've been paying into since I started working, beyond that I have my own cash savings, and stocks and other investments. I think I'm adequately prepared/preparing for my retirement and for the government to tell me that I'm not and that they want to increase the amounts I have to pay into this scheme for something that I may never draw from just doesn't sit well with me.
I look forward to the point in the year where I reach my YMPE and now it's going to be pushed way back. Why can't the government just leave us to fend for ourselves??? I'd be totally ok with it if they made the new contributions opt-in but forcing me to contribute?? ugh.
Jun 21st, 2016 1:35 am
I don't believe so. It's a federal program...the feds were probably not going to meddle with it unless it had the support of the majority of the provinces, which 8/10 is.
Jun 21st, 2016 2:25 am
A change to the CPP needs the consent of Ottawa and a minimum of seven provinces representing at least two-thirds of the country’s population.
This seems unduly pessimistic. CPP is a well defined pension plan, and the likelihood that it won't provide benefits is probably far less than, say, a corporate pension plan.GQBLUEZ wrote:As it is I don't factor in any potential CPP revenues into my retirement plan. The fact that they are now going to be pulling more money out of my paycheck to fund something I may or may not be able to benefit from in the future is rather annoying
Jun 21st, 2016 6:01 am
Not so great news for employers, who will also be footing 1/2 the amount of the increased premiums. Also not so great news for people they would have hired if not for the fact that an expanded CPP increases labour costs.
Jun 21st, 2016 6:07 am
Jun 21st, 2016 6:39 am
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Jun 21st, 2016 8:05 am
Jun 21st, 2016 8:09 am
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Jun 21st, 2016 9:04 am
lol wasnt ORPP suppose to add 12K a year if you made maximum contributions (6K if average contributions)...this CPP expanded is only going to add 4K...
Jun 21st, 2016 9:16 am
TORONTO, June 20, 2016 /CNW/ - Canada's finance ministers decided to hit small business owners with another tax today, with an agreement in principle to expand the Canada Pension Plan (CPP), a devastating move for Canadian workers and the economy in general.
"It is tremendously disappointing to see that finance ministers are putting Canadian wages, hours and jobs in jeopardy and willfully moving to make an already shaky economy even worse," said CFIB president Dan Kelly. "Despite all the talk, it appears that jobs and the economy are not particularly high priorities for the governments that have signed off on this deal."
Reports suggest Manitoba and Quebec have not agreed with the plan.
The agreement in principle will see a CPP hike phased in between 2019 and 2025. Contributions will increase to cover 33 per cent of income, up from 25 per cent under the current system. The earnings threshold will increase to $82,700 by 2025.
"What's worse, it appears governments aren't even bothering to consult Canadians on the move – even when an Angus Reid poll shows that less than 10 per cent are following the issue," added Kelly.
Lone positive: Ontario Retirement Pension Plan is dead
"The only positive to come out of this process is that the ORPP – the CPP's far uglier cousin – won't come to fruition," said Kelly. "It's a shame that Ontario spent millions of dollars to effectively bully the smaller provinces to force their pension agenda."
Impact on small businesses
CFIB is Canada's largest association of small- and medium-sized businesses with 109,000 members across every sector and region.
- 71 per cent of small business owners oppose a mandatory premium hike, according to CFIB's latest survey
- 67 say it would increase pressure to freeze or cut salaries
- 46 per cent say they would reduce investment in their business
- 35 per cent say it would force them to lay off employees
SOURCE Canadian Federation of Independent Business
Jun 21st, 2016 9:30 am
Jun 21st, 2016 9:38 am
I think that $82,700 YMPE is in 2025 dollars, not 2016. They seem to have anticipated the normal YMPE increases, as well as the new 14% YMPE increase which will phase in during 2024-25. Try using something like $62,600 (~ 54900*1.14) instead of 54900 and see how it works out. It is very irritating that their briefing stuff seems to use 2016 dollars for things like benefits but future dollars for the YMPE.romeocanada wrote: ↑Earlier the maximum annual CPP payments were 13110 (1092.5 * 12) and we paid 9.9% (employee 4.95% and employer 4.95%) of $51400 (54900 - 3500).
Now once CPP expansion is all phased in, the Annual Maximum Contributions Earning will be raised to 82,700 and we should be paying 5.95% for employee and 5.95% for employer to get 33% of 82,700 which is about $27291 per year. But in news it tells that 13110 has been increased by one third to 17436/ year. What am I calculating wrong here?
Jun 21st, 2016 9:41 am
"The ORPP proposed a system in which employers would have been exempt from participating if they already provided their employees with a pension plan that met specific criteria."
Jun 21st, 2016 9:46 am
definitely businesses that have a pension plan are losers...now there is another "tax" that why will need to fork out without much benefit to the business (this is really surprise to many). So if you're a shareholder...you're a loser.
Jun 21st, 2016 9:58 am