Canadians misinformed on CPP expansion deal; oppose plan if it affects wages MB

81 per cent want consultation before expansion: new Ipsos poll

Winnipeg, September 8, 2016 – A new Ipsos poll reveals that most Canadians don’t know how the Canada Pension Plan (CPP) works or what CPP expansion will mean. When presented with some of the probable effects on wages as a result of the expansion, 70 per cent of employed Canadians said they would oppose the hike. In light of this latest information, the Canadian Federation of Independent Business (CFIB) calls for the expansion deal to be put on hold until full education and consultation can take place.

“It’s stunning that governments are racing forward on a policy change of this magnitude when most Canadians are completely unaware of how it affects them,” said CFIB president Dan Kelly. “The results show that governments have been anything but clear about the reality of this proposal and that public support for the deal vanishes when people are presented with the likely impacts.”

Misunderstandings abound

  • Almost 40 per cent of Canadians think the government pays for part of CPP (only one in four know it’s not true).
  • Only a quarter of Canadians know it will take about 40 years before the full increase in benefits is available.
  • More than 70 per cent of Canadians don’t realize that current retirees get nothing from CPP expansion.
  • Over 25 per cent of those already retired believe they will see bigger CPP cheques as a result of the deal.

The poll found 70 per cent of working Canadians oppose CPP expansion if it means their wages will be frozen during the phase-in period. That jumps to more than 80 per cent if it means wage cuts. Both outcomes are likely, according to previous CFIB surveys of small business owners.

Consultation and education required

“This should be a wake-up call,” added Kelly. “Canadians are telling their governments that they have a lot more work to do before moving forward with any kind of CPP expansion. Education, consultation, and only then, action. At this point, it would be irresponsible to proceed otherwise.”

British Columbia is the only province (outside of plans in Quebec) to open a channel for public feedback on the proposal to hike contributions to the CPP. “We’ve commended the BC government for doing the right thing and following through on an important step skipped by the federal and other provincial governments, including Manitoba,” added Jonathan Alward, Director of Provincial Affairs for Manitoba. “We’re calling on all provinces and the federal government to step up and follow BC’s lead and consult the public before they move forward on a policy that has yet to be properly studied or understood.”

To arrange an interview with Dan Kelly, please contact Kiara Morrissey at 416-222-8022, 647-464-2814 or public.affairs@cfib.ca.

To arrange an interview with Jonathan Alward, Director of Provincial Affairs for Manitoba, please call 1 888-234-2232, 204-982-0817 or email msman@cfib.ca. You can also follow CFIB Manitoba on Twitter @cfibMB.

CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members (4,800 in Manitoba) across every sector and region.