Letter: What happens to uncollected CPP?

…the government calls your pension plan, one you have contributed to all of your working life, an entitlement program…

To the editor:


Do you know someone who died before they collected their first CPP pension cheque? Ever wonder what happened to the money they, and their employer(s) contributed to the CPP plan over the employee’s working life?  Where did it go? Does the government factor those uncollected amounts into their calculations of available CPP benefits for the pensioners who are still living?


If you averaged $30K in income over your working life, your CPP contributions (and those of your employer) would total over $200,000. Do you see where the government paid one single penny into your CPP program?


These are monies that you and your employer(s) put into the hands of government to insure that you and I would have a retirement cheque at the end of our working lives yet, the government calls it an “entitlement” program when we reach the age to take it back. They get to determine how much you will get every month.


If you were to calculate the future invested value of $4,500 per year in contributions from you and your employer(s) at a simple interest rate of  five per cent, after 47 years of working, you would have around $800,000 in your pension fund.


If you took out only three per cent per year to live on, you would have a lifetime income of about $26,000 per year, or just under $2,200 per month (until you are 95 if you retied at 65). And that’s with no interest paid on the final amount on deposit over the course of your retirement years.  How many seniors in Canada are receiving $2,200 per month from their CPP plan?


Many of our retired seniors are living on a fixed income (CPP and OAS) and receive  no substantive additional federal support, nor do they get any financial breaks. Meanwhile our government offers huge tax breaks to corporations and numerous organizations. (Not to mention there are the huge benefit packages our elected representative for themselves to ensure they have a comfortable retirement after only six years in office.)


Our governments, past and present, have spent (and will likely continue to spend) hundreds of millions of dollars to provide aid to numerous countries around the world, not to mention the administrative costs attached to these programs. Yet the government calls your pension plan, one you have contributed to all of your working life, an entitlement program which they control and make determinations as to how much you can survive on for your retirement years.


I am all for helping others in need but, I would think that  our government should be helping those in need here in this country first and foremost, particularly our seniors who have contributed so much over their working lives  to the growth and development of this country. Don’t you ?


Grant Baudais



Kelowna Capital News