http://www.edmontonsun.com/money/column ... 43981.htmlThe Ed Sun has it right on many points but misses a couple all together.
The government report being referred to was not one report. Each party on the committee wrote their own. There was no agreement at almost any level.
The best idea came from the Government themselves, expanding the CPP/QPP model, the worst from the NDP.
The NDP wanted to double the CPP contributions and force more Canadians, particularly more Western Canadians to throw good money after bad into this federal program. Why is that such a bad idea?
Because you will get nothing or only a tiny fraction of your contributions and their compound interest back forcing you to pay even more into the program means you have even less money for retirement. That is the exact opposite of the stated objective (better retirement plans).
The problem with the CPP and most federal programs is that the East disproportionately benefits. This is by design. Almost all Federal programs are designed to transfer money from Canada's colonies back to Canada. The CPP (and EI) are no different though they are extreme examples.
Think about doubling your contributions, already hundreds of dollars a month and then think of your CPP pension cheque that is promised. That cheque will be completely taxed back unless you are destitute or have arranged your finances to make it appear so. So where will those hundreds of thousands of dollars build up over your 30yrs (or maybe 40yrs) go? Yep that money goes East, hence the great support for such programs by the majority of Canadians, particularly in Que/Ont.
The best solution is to have all social programs done locally, as local as possible. The many Nations, and provinces in Canada need to set up their own programs and retirement programs should be self funded.
This means we can allow anyone into such programs even new immigrants as the pay out they get will be directly related to the money they have put in. It is the only fair way to set up such programs, if a Nation decides they want to go that way, there are other options.
Personally I think that retirement programs are old school, industrial revolution age. Alberta and most Nations in Canada are wealthy enough to have Guaranteed Income plans to ensure people always have the basics covered.