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Pension Reform in Canada*

Published online by Cambridge University Press:  29 November 2010

Ken Battle
Ken Battle
Affiliation:
Caledon Institute of Social Policy
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Abstract

Since the mid-1980s, Canada's social security system has been undergoing a profound transformation. Virtually every major social program has been or is in the process of being changed. The pension system is no exception: every element of Canada's complex retirement income system, both public and private, has been altered in some manner, in some cases profoundly. This paper analyses the various changes to Old Age Security and other elderly benefits under the Mulroney and Chrétien governments, culminating in the new Seniors Benefit. The Conservatives used “social policy by stealth” to make significant changes to elderly benefits, paving the way for the Liberals' plan to rationalize programs into a single income-tested Seniors Benefit. Arguments for and against the Seniors Benefit are considered. The Canada Pension Plan also is under scrutiny by the federal and provincial governments, which are considering two routes to reform — a move from paygo to partial funding, including a more rapid ramp-up in contribution rates, and various options to trim benefits.

Résumé

Depuis le milieu des années 1980, le système de sécurité sociale du Canada a subi de profondes transformations. Pratiquement tous les programmes importants ont été modifiés ou sont en train de l'être. Le système de retraite ne fait pas exception: chaque élément du système complexe de revenu à la retraite canadien, public ou privé, a été modifié, et parfois en profondeur. Cet article analyse les divers changements apportés au système de Sécurité de la vieillesse et aux autres avantages pour les aînés sous les gouvernements de Mulroney et de Chrétien, ce qui a donné lieu au nouveau régime de Prestation aux aînés. Les Conservateurs avaient eu recours à la technique «furtive» pour apporter des modifications importantes aux avantages des aînés, ouvrant la voie à la rationalisation des programmes par les Libéraux en une seule prestation liée au revenu. Les avantages et désavantages du régime de Prestations aux aînés sont passés en revue. Les gouvernements fédéral et provinciaux examinent le Régime de pension du Canada à la loupe et envisagent deux modes de réforme, le passage du financement par répartition au financement partiel, ce qui donnerait lieu à une accélération plus rapide des taux de contributions, et d'autres options pour élaguer les prestations.

Keywords

PensionsSeniors BenefitElderly BenefitsRetirement Income SystemPensionsprestations aux aînésprestations aux personnes âgéessystème de revenue de retraite
Type
Articles
Information
Canadian Journal on Aging / La Revue canadienne du vieillissement , Volume 16 , Issue 3 , Fall/Automne 1997 , pp. 519 - 552
Copyright
Copyright © Canadian Association on Gerontology 1997

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