Pension Age to Climb, Penny to be Scrapped
Thursday, March 29, 2012 @ 1:23 PM
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Prince George, B.C.- The Federal budget will see the age boosted for OAS and GIS eligibility and promises to scrap the penny.Federal Finance Minister Jim Flaherty rose to deliver the Harper Government’s latest budget but before he could get to the details, voices from the gallery started chanting, over and over, “Where are we in this budget? This is not our budget!”
After order was restored Flaherty delivered the details of the financial plan which includes a plan to increase the age of eligibility for Old Age Security and the Guaranteed Income Supplement from 65 to 67.
· Gradually increase the age of eligibility for Old Age Security (OAS) and Guaranteed Income Supplement (GIS) benefits from 65 to 67, starting in April 2023, to be fully implemented by 2029.
· Allow Canadians to defer the take-up of their OAS pensions so they can receive a higher pension later.
· Put in place a proactive enrolment regime for OAS and GIS to reduce the burden on seniors of completing application processes and reduce the Government’s administrative costs. Proactive enrolment will be implemented in a phased-in approach from 2013 to 2015.
Here are some of the other highlights:
· Making major investments of over $1 billion to support science and technology.
· Providing $500 million to spur the growth of innovative start-up companies.
· Ensuring responsible resource development by moving to “one project, one review” within a clearly defined time period for major economic projects while continuing to protect the environment.
· Opening new markets and expanding international trade, bringing Canadian goods to the world.
· Extending the Hiring Credit for Small Business for one year to make it more attractive for small businesses to grow and hire more workers.
· Providing $150 million over two years for the new Community Infrastructure Improvement Fund.
· Providing $5.2 billion over 11 years to renew the Canadian Coast Guard.
· Better focusing Employment Insurance on promoting job creation by removing disincentives to work and supporting unemployed Canadians by connecting them more quickly to jobs.
· Providing $275 million over three years to support First Nations education and build and renovate schools on reserve.
· Building a fast and flexible economic immigration system to attract immigrants with the skills and experience our economy needs.
Flaherty says an important part of the low-tax, low-debt plan is returning to a balanced budget in the medium term. “ Over the past year, we have found fair, balanced and moderate savings measures to cut the deficit in half.” He says there will be moves to make government leaner, and more efficient, and we will eliminate the penny.”
He added that “Even the opposition would agree the pennies take too much space on our dressers at home.” While the Government will stop producing the penny, those in circulation will still be accepted as legal tender.
The Government will also stop printing many of the documents it now produces, thereby saving on paper costs. Instead, documents will be produced digitally.
“We will stay on course, to keep creating high-quality jobs and long-term economic growth for Canadians,” said Minister Flaherty. “We will not raise taxes. We will maintain our consistent, pragmatic and responsible approach to the economy, and take the necessary next steps to build confidence in our future.”
“In this budget, our Government is looking ahead not only over the next few years but also over the next generation,” said Minister Flaherty. “The reforms we present today are substantial, responsible and necessary. They will ensure that all across government we are focused on enabling and sustaining Canada’s long-term economic growth.”
Comments
New zealand transitioned to no penny without all of the hair-brained conspiracies. Too many of you spend too many mornings at A&W with the other old cranks making this stuff up.
Great… now I have to ask “Nickel for your thoughts?”
I suppose all the “give a penny, take a penny” trays will be removed from store counters.
The story I read said that pennies will always be accepted at retailers as long as people have them. They’re just not making any more. Time to dig those dusty jars out of the closet.
This story says that the CPP eligibility age will increased from 65 to 67, but Its the OAS that will increase to 67. I believe that the CPP and OAS are two different things. CPP which is your basic pension comes from user contributions whereas OAS come from basic government revenue.
Give a penny, take a penny. Need two pennies? Get a job.
Ruez, you are correct this is a mistake in the story I assume. The Government is not touching the CPP it remains the same. It is the OAS and GIS that are increasing from 65 to 67 and is not starting until 2023.
“Providing $150 million over two years for the new Community Infrastructure Improvement Fund.”
We’ll need all of that in Prince George just for the roads
I for one have seen through the penny deal already. All you have to do is pay with a debit card. They won’t be able to round it either up or down. The demise of the penny is only going to affect cash sales, and sadly most people use a debit card these days.
Who uses cash anymore anyways? its all debit
Ben or Elaine,
Could you clarify the cpp issue that “Ruez” and “newly retired” are talking about?
My error, in the original story..
although the details as presented below the reference to CPP were correct at the time of original publication and remain unchanged.
I apologize for the error and any confusion it may have caused.
-Elaine Macdonald
Show me one retailer who will round their prices down?
About the OAS. Why is there no discussion about those jobs that are extremely physical and make it almost impossible to continue doing past 65 or even up to 65?
Got to be some discussions surrounding the type of work you do and the age you can retire at. Why does it have to be the same for everybody? Some people can work longer, some people can’t. Some people want to work longer, some people don’t.
No mention of changes to CPP. Only pushing the age to 67 to apply for OAS years down the road.
Can still apply for reduced CPP at age 60 without having to quit work as of January, 2012. Great for those working part-time or those who are now working for much less than they did in their previous careers. We paid into CPP and we are entitled to collect it.
OAS is a different issue.
So all Canadians under 55 will loose $12,000 in OAS with this budget. If under 55 and voted conservative, that would be the cost of your vote.
The problem with this is it assumes that the body of a mechanic or someone that works out doors has the same wear and tear as someone that works in an office or retail.
For some that just can’t go on the extra two years this becomes an issue of dignity in their twilight years. Now if your body can’t carry on at 65 you will be forced to beg for welfare to bridge the gap, rather than having the dignity of a small entitlement to bridge the gap.
In reality there is no real savings as its just shuffling from entitlement to beggar, and any savings come at a great cost to the most vulnerable. If at 65 you have any assets you will now need to liquidate those meager assets to live off of to become eligible for welfare… thus condemning your retirement years to abject poverty, where as before your personal savings would have been your cushion to supplement your income for many years to come… $12,000 from the marginalized in their first two years of retirement could take everything from the most vulnerable.
Meanwhile we all know conservative voters have fat pensions and topped up RRSP savings, so its not really an issue that concerns them. Dignity is assured for the conservative voter… its about ideology for them, if your not like them and life didn’t favor you than your rights and dignity should reflect that.
We all payed in to the OAS, we all pay Taxes
how many more will drop off before 67, a Win Win for the Government.
“I heard on the news tonight that some stores are already trying to figure out pricing so once taxes are added, the amount due will be 0 or 5 cents…. “
Kind of stupid, wouldn’t you think?
It would be achievable if one were only buying single items.
Take a $1.99 item; add 12% HST of $0.24 and you pay $2.23 if you have the pennies. Rounded up it is $2.25.
Buy two items priced at $1.99 and the total comes to $4.46. Rounded down that is $4.45.
So who gains and loses the difference? It should be the taxing authority.
It is easy for merchants and service providers to price goods and services in 5 cent increments. But depending on the total number of items purchased, the before tax bill on a purchase will always end up in a 5cent increment, but when the tax is added it will sometimes end up having to be rounded up or down.
“Providing $150 million over two years for the new Community Infrastructure Improvement Fund.”
Sound like a small figure. That’s because it is for a small component of infrastructure improvement.
The infrastructure program is explained in more detail here:
http://dcnonl.com/article/id49494/–ottawa-to-provide-150-million-for-community-infrastructure-fund-856-million-for-quebec-ports
“Over the next two years, the Canadian federal government will spend nearly $12 billion to support provincial, territorial and municipal infrastructure through existing initiatives.
“However, among the new infrastructure funding proposals in the federal Economic Action Plan 2012 is a Community Infrastructure Improvement Fund, which proposes $150 million over two years, to support repairs and improvements to existing small public infrastructure facilities.”
Thank you Gus. At least some of the posters here are bright enough to educate the rest.
Yes he’s our own Cliff Claven, lol.
$150 million….how much did you say they spent in Afghanistan and Libya??
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