Published by Senator Catherine Callbeck on 25 October 2007
“Many thousands of Canadian seniors do not benefit from the Canadian Pension Plan simply because they do not know they are entitled to it. CPP benefits are not paid out automatically. Seniors must apply for CPP benefits, but many seniors do not realize that they are entitled and therefore they do not apply.”
- Senator Catherine Callbeck in the Senate on October 25, 2007
Tens of thousands of Canadian seniors have paid into the Canada Pension Plan (CPP) but are not receiving the benefits to which they are entitled. In fact, the federal government has identified more than 26,000 individuals who are already receiving Old Age Security, GIS payments or CPP survivor benefits, but have not applied for their CPP benefit.
In addition, if a senior applies late for CPP benefits, the current legislation provides only for 12 months of retroactive payments. Only if a senior was given erroneous advice by federal officials, or where benefits were not paid due to an administrative error, can full retroactive benefits be paid.
In contrast, the Quebec Pension Plan is very successful in reaching people - over the telephone and in person - using an integrated computer system. And despite the same contribution and benefit rates, retroactivity for the QPP is a full five years. There is no reason why CPP cannot do exactly the same.
In recent months, Senator Callbeck has launched an inquiry in the Senate about the CPP retirement benefits issue and has written to the Honourable Monte Solberg, Minister of Human Resources and Social Development, to urge him to work quickly to find solutions to these problems.
She also asked that the Standing Senate Committee on National Finance consider examining the problem, which it did on December 4, 2007. The Committee heard from a number of witnesses, including representatives from CARP, Human Resources and Social Development Canada, the Chief Actuary, the Department of Finance, and the Office of the Commissioner of Review Tribunals (Canada Pension Plan/Old Age Security).
“It is simply not acceptable that there are seniors living in this country who are not receiving the pension benefits to which they are entitled. We have to do better.”
- Senator Callbeck