A NEW LEARNING
Canada Pension Plan – Huge Increase Announced
My worries are over.
The Federal Government yesterday, announced a whopping increase to Canada Pension Plan (CPP) Payment Rates. Prime Minister Harper made the announcement to a shocked House of Commons, citing it as one of the integral steps to the stimulus package. He stated that he believes that seniors with this fresh incentive money will boost the economy significantly. He described how with limited incomes, seniors have been compelled to locate inexpensive beverages and food at Tim Horton’s and MacDonald’s franchises for years. He wants to encourage seniors to enjoy the occasional Starbucks latte and Keg steak dinner.
Harper’s announcement estimates that twenty-eight million dollars has been designated to finance the substantial boost in CPP benefits. Here is the way it breaks down. At age 65 the maximum monthly benefit to Canadians has been $908.75. This has been raised to $1500 per month effective May 1 2009. Survivors benefit (under age 65) was $506.38 and is now $1000 per month. The entire CPP payment Plan can be found at http://www1.servicecanada.gc.ca/eng/isp/pub/factsheets/rates.shtml
The Prime Minister has also announced the unusual option that seniors may choose to have their CPP as one annual lump sum rather than monthly payments. If a senior signs to accept this option within the next ten days, there is a signing bonus of $5000.00. Mr. Harper indicated that his desire is that seniors with these substantial amounts of money will be encouraged to spend. This will assist the recovery of our sagging economy. He also indicated that if anyone over 65 years of age purchases a new car between April 1 and June 1 2009 the Federal Government will provide an interest free loan of up to $20,000. Needless to say, with the ageing population, and the imminent possibility of another election, Mr. Harper is counting upon a huge support from the senior sector of the nation and pundits and journalists believe he will get the majority government for which he has been looking.
An April 7th Addendum: Readers who happen to look back to this entry after the April 1st date may not associate it with the April 1st joke it was intended to be. That's what it is. Here is a link to a government page with an actual January 1st 2009 increase in the CPP rate and opportunity to ask a commissioner any private question concerning your entitlement. http://news.gc.ca/web/article-eng.do?nid=426809