OTTAWA — Provincial finance ministers have quietly prodded Finance Minister Chrystia Freeland to put a pause on planned increases in premiums workers and businesses pay into the Canada Pension Plan.
The planned increase on Jan. 1 is part of a multi-year plan approved by provinces and the federal government four years ago to boost retirement benefits through the public plan by increasing contributions over time.
The first premium bump was in 2019, another was earlier this year and the next is due at the beginning of 2021.
A number of provincial finance ministers on a recent call with Freeland asked her to put a pause on next year’s automatic increase because of the COVID-19 pandemic.
They argued it isn’t a wise economic decision to take more off workers’ paycheques and to charge businesses more when many are still struggling.
The details are in a letter Saskatchewan’s finance minister sent Freeland two days ago, a copy of which was obtained by The Canadian Press.