Article content

Increasing the benefits of the Canada Pension Plan (CPP) and a similar retirement plan in Quebec would hurt the Canadian economy and result in significant job losses, according to a report from the Canadian Federation of Independent Business.

Expansion of the CPP is under consideration, and will be discussed by provincial finance ministers next month. The push for expansion of the national retirement benefits program has taken hold as provinces such as Ontario resist a federal plan to establish pooled pensions for employees of companies that don’t have existing pension plans.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Canada can't afford CPP expansion, independent business group says Back to video

One option under consideration for CPP expansion would cost employees up to $1,100 more per year, bring employment growth to a halt and force wages down 1.5%, according to the CFIB.

“There’s been lots of talk about increasing benefits, with very little mention of the cost,” said Ted Mallett, vice-president and chief economist of the CFIB. “The short-term impacts are substantial, yet benefits could take decades to be fully implemented.”

The federal government’s planned Pooled Registered Pension Plans (PRPPs) have received a tepid response in some provinces. Quebec, British Columbia and Alberta have passed companion legislation, but the latter two provinces have made employer participation optional, which critics say will dull the ability of pooled pensions to fill gaps in retirement benefits.