A report from Canada’s OAS actuary Jean-Claude Ménard reveals that CPP changes by the Trudeau Government will cause 243,000 low-income seniors to no longer qualify for the Guaranteed Income Supplement (GIS).
When the Trudeau government proposed changes to the Canada Pension Plan – which forced low-income Canadians to have more money taken out of their pockets through CPP premiums – concerns were raised about potential serious negative impacts of the policy.
Now, those concerns have been vindicated.
A report in the Globe & Mail has revealed that one consequence of the CPP changes being pushed by Trudeau is that 243,000 low-income seniors will be stripped of their GIS benefits over time:
“The report shows that because of the planned CPP changes, by 2060, 6.8 per cent fewer low-income Canadians will qualify for the GIS, representing 243,000 fewer beneficiaries. This will save the federal government $3-billion a year in GIS payments.”
While the idea is for increased CPP premiums to cover any loss of GIS benefits, well-respected statistician Richard Shillington told the Globe & Mail that’s not how it will work in reality, demonstrating the impact of higher CPP premiums and loss of the GIS:
“People who are already low income will have an even lower disposable income [while working], and the beneficiary of that saving will be primarily the federal government in reduced GIS spending,” Mr. Shillington said. “The numbers quantify from a very credible source a pattern that the policy experts knew was there. One of the issues that the CPP expansion didn’t address, and in fact exacerbated, is that because of the GIS clawback, it’s very difficult to increase support for low-income seniors.”
Trudeau government ignored warnings
When the CPP changes were first announced, groups advocating for low-income seniors, and Canadian businesses both expressed concerns. There were clear warnings that low-income seniors could be hurt by the policy, and business would face increased CPP costs – which come at the expense of wages and job creation.
Hurting the most vulnerable
A policy that strips 243,000 low-income Canadian seniors of their GIS over time is awful, and it must be reversed. While the impact is over an extended period of time, with each passing year more and more seniors could face difficulty because of it.
The Trudeau government is spending record amounts on foreign aid and giving our taxpayer money away around the world. Even worse, the government somehow found $35 billion for an infrastructure bank that will give power to foreign financial institutions for many decades to come.
It’s unbelievable that a government spending so much money could somehow reduce support for some of the most vulnerable people in our country.
That is not acceptable.
The elites want to hide their many failures behind political correctness, deception, and manipulation. We need to push back and spread the truth.
That’s why I write.
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