Oct 03, 2013
By Jane Brown
Middle-income retirees would benefit if a proposal is accepted to increase contributions to the Canada Pension Plan. Behind the push is Prince Edward Island Finance Minister Wes Sheridan. He’s trying to rally his provincial colleagues around changes that would see the maximum CPP contribution rise to $4681.20 a year from the current $2350.20 starting in 2016. The maximum annual benefit would then increase to $23,400 a year from $12,150.
The overall goal would be to boost the retirement incomes of Canadians who earn less than six figures. Ontario Finance Minister Charles Sousa is praising PEI’s plan and says he will push for action later this year. It’s a proposal that might be entertained by Federal Finance Minister Jim Flaherty who has invited his provincial and territorial colleagues to discuss retirement income issues at a meeting in December.