REPORT: Trudeau Government CPP Changes Will Take GIS From 243,000 Low-Income Canadian Seniors Over Time

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.

Spencer Fernando

***

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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Phil McGuire

The 905 belt voters, excuse me the “middle class,” is in crisis so all taxation and borrowing, sorry “investment” must be directed there. The poor? Not enough votes to bother with. Besides they’re tough, they’re already getting hammered with carbon taxation and job killing government intervention, helping become unemployed one lost job at a time. They can’t afford beer & popcorn anyway so are of no importance to our betters not concerned with out worst instincts, ie not praying at the altar of the coercive state. Too bad for them, and therefore us, they’re running out of money and are… Read more »

C

Trudeau is a disgrace and corrupt, he is destroying our country little by little! The opposition should do something about Trudeau! What is this country coming too,? Help everyone else in the world, at the expense of the taxpayers! What happened to Canada come first?

jack grandville

It has been in the air for a long time now and the noise is getting louder and louder — it appears that Phil is 100% correct with his comments and many who may not share the knowledge he has, would agree with the comments he makes. Also in the air is a warning that something may be happening in the ‘ghettos’ if I can use that term. There is great dissatisfaction with politicians in general and a very great dissatisfaction — some of it bordering on outright hate of Trudeau and his government. That bodes no good for our… Read more »

Andrew Klinzmann

The only problem with throwing out this abhorrent alt-left government in 2019, is that the “progressive” left will simply not “accept” it ! Canada will see spoiled, whining, cry-baby snowflakes go on a binge of rioting, looting, burning, smashing, and protesting after the legitimate change of government. Just like we see down in the US, these antifa-style protests will continue endlessly as the alt-left simply will not accept their loss…..

Gary C Jones

Rather than decrease pension income to seniors I would hope that Trudeau would agree to increase the basic pensions, including the GIS, to at least the poverty level of $20,070. Still not enough to live on in most areas of Canada but at least it gets seniors off eating cat food to survive. Seniors have contributed so much to the growth of this country and paid millions of dollars in all sorts of taxes in their lifetimes. They deserve better.

Len

Andrew … I understand your concern, but what is the alternative … to just cave??
Not bloody likely … we conservatives are nice people … until our country is threatened and we are forced to become “not nice” … buck up !!

EdnA

I’m a senior no raise in pensions, groceries & rents increasing every month, refugees getting more than us, just where is the fairness,especially when lots of the rents are going to other countries, we surely sold Canada out. Don’t want to complain about the refugees but shouldn’t Canada look after us first?