Dear (name removed),

Thank you for your email expressing concern for the security of Canadians’ pensions. Canada’s Retirement Income System is internationally recognized for its adequacy, affordability and sustainability. It is based on a balanced, three-pillar mix of shared public-private responsibility and voluntary-compulsory programs. However, our government recognizes that many pensioners still have concerns for the future, and we are taking action to address those concerns.

I see that you have sent your email to the Ministers of Finance and Industry. I have contacted their offices and been assured that someone will respond to your correspondence. I will allow the Ministers to address your specific questions. Both Ministers are very interested in hearing what Canadians, like you, have to say. As you may be aware, our Conservative Government has engaged in a very serious discussion with Canadians on pensions and pension security.

In May, we conducted the mandated triennial review of the Canada Pension Plan (CPP). Reforms to CPP to allow greater flexibility in how Canadians retire were unanimously agreed to by all governments as part of that review.
These reforms include the removal of the requirement for individuals to stop working or reduce earnings for two months in order to take up CPP and permitting more low-earnings years to be excluded from the pension calculation (http://www.fin.gc.ca/n08/09-051-eng.asp).

Our government has also brought into force new regulations to provide temporary solvency funding relief for federally regulated defined benefit pension plans. The measures cover plans established for employees working in areas that fall under federal jurisdiction (http://www.fin.gc.ca/n08/09-059-eng.asp).

In fact, we have taken many steps to make retirement easier and more affordable. Our Conservative Government has introduced landmark changes to ease the tax burden on Canadian seniors since 2006. These measures will provide nearly $2 billion annually in tax relief to seniors and pensioners, including:
• The 2008 Economic and Fiscal Statement reduced the required minimum
Registered Retirement Income Fund (RRIF) withdrawal for 2008 by 25 per cent,
providing $200 million in tax assistance to RRIF holders and allowing
retirees to keep more of their savings in RRIFs
• Budget 2007 increased the age limit for maturing pensions and RRSPs from
69 to 71 as of 2007
• The Tax Fairness Plan introduced pension income splitting for the 2007 and
subsequent tax years, and increased the Age Credit amount by $1,000 for 2006
and subsequent taxation years
• Budget 2006 doubled the amount of income eligible for the Pension Income
Credit (from $1,000 to $2,000) as of 2006
• Budget 2008 increased the amounts that can be earned to $3,500 before the
GIS is reduced, so that GIS recipients will be able to keep more of their
hard-earned money without any reduction in GIS benefits, providing
additional financial support to low income seniors still in the workforce
• Budget 2008 announced significantly more flexibility for seniors and older
workers with federally regulated pension assets that are held in Life Income
Funds to use their retirement savings when and how they require

Our government made these changes, along with several other significant tax cuts, because we recognize the valuable contribution our seniors and pensioners have made to this county.

I thank you again for sharing your concerns. I respect that you are concerned for the security of your pension and our government will consider these concerns and review what is within our power to make Canadian pensions
more secure.

Best Regards,
Rod Bruinooge, MP