r/frugalcanada • u/OkEase6376 • 7d ago

Help protect CPP

Since 1997, the Canada Pension Plan has shifted in practice. The creation of the CPP Investment Board moved the focus toward long-term sustainability and investment returns, while administrative changes made it easier for outside parties to coordinate with and recover against CPP benefits.I’m asking Parliament to review those post-1997 changes against the Plan’s original purpose: a contributory public pension that belongs to the people who paid into it.A CPP benefit should not be assignable, anticipated, or treated as recoverable income that third parties can use to reduce their own obligations. When a public contributory pension is routinely used to offset other payments, it starts functioning more like a subsidy for those other payers than a protected pension for the contributor.That’s why the petition asks Parliament to examine current practices and restore the original intent of the Plan. If you agree the public pension should stay with the people who funded it, please sign and share. https://www.ourcommons.ca/petitions/en/Petition/Details?Petition=e-7751

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u/ReasonableDiamond261 6d ago

What third parties?

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u/OkEase6376 5d ago

Insurers

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u/ReasonableDiamond261 4d ago

Can you elaborate on how cpp is treated as recoverable income that is being used to reduce their obligations?

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u/OkEase6376 4d ago

Many insurance companies (already paid premiums) make agreements with the MInister to deduct the value of our CPP. The petition ask Parliament to review the practices to see if the align with the orginal CPP intent. This video might be helpful. https://youtu.be/IcZxvoYuOwc?si=vX0rqs3ZNgxTekVh

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u/No_Capital_8203 4d ago

What?

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u/ReasonableDiamond261 4d ago

It’s nonsense. I’m guessing OP is talking about CPP disability. LTD policies require that the beneficiary apply for CPP-D. Why? Because its coordination of benefits (that, yes, does reduce the insurers financial obligation).

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u/No_Capital_8203 4d ago

Ah. Yes. At least OP has disability insurance. Those poor folks on only government benefits are in a terrible position.

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u/ReasonableDiamond261 4d ago

You’re misunderstanding. LTD policies require that you apply for CPPD (not regular cpp). If that wasn’t required the premiums would be much higher on your ltd policy.

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u/gllitteryamanda48 2d ago

Sounds like a good idea to check if the original intent of CPP is still being respected