Talks are in the works to change Canada’s Pension Plan and Nova Scotia isn’t being left out.
Nova Scotia Finance Minister Maureen MacDonald says when the finance ministers met in Quebec in December, they all agreed CPP needs to improve.
“I don’t think it’s a secret that we face a retirement crisIs, in terms of income security from inadequate pensions,” says MacDonald. “All the finance ministers agree we need to do this. We’ll start moving forward in the next year as the economic recovery gets stronger.”
The current CPP plan replaces 25% of a worker’s income, which MacDonald says is quite low. She says now they’ll have to conduct studies to see what their options and costs might be.
“We’re looking at an incremental improvement of the plan,” says MacDonald. “We’ll look at improving benefits, but that means paying for those benefits and an increase in contributions to both people who are employers and workers.”
The response comes after Paul Moist, national president of the Canadian Union of Public Employees, said CPP benefits should be doubled to help people who don’t have a workplace pension plan.