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Member, Beacon International Group, Ltd.
OTTAWA--A Canadian union is proposing to amend the government pension program to require employers that do not offer workplace pensions to pay higher premiums than their counterparts that provide employer-sponsored plans.
The extra funds from higher premiums will be used to pay additional benefits to retired workers who do not have a workplace pension plan, according to the proposal by the National Union of Public and General Employees, which represents 340,000 public- and private-sector workers in Canada.
The Canada Pension Plan is a social insurance program that provides monthly pension benefits to residents in all Canadian jurisdictions except Quebec, which has a separate program. The program is funded by contributions from employees and employers. Employees are eligible to begin receiving funds from the plan between the ages of 60 and 70.
Larry Brown, the union's national secretary-treasurer, said the proposal would create an incentive for employers to provide pension plans. The union recently released a report that showed 38.5% of Canadian workers were covered by a pension plan in 2005, down from 46% in 1991.
"They would pay for a workplace pension plan or pay higher CPP premiums," he said in a statement. "Either way, they would be required to meet their moral obligations to their employees."
NUPGE is not proposing a specific contribution increase for employers without workplace pensions, a spokesman said. "At this point of the campaign, we're focused on the principle we're proposing and articulating that principle," he said.