Pension reform in Canada

Since the mid-1980s, Canada's social security system has been undergoing a profound transformation. Virtually every major social program has been or is in the process of being changed. The pension system is no exception: every element of Canada's complex retirement income system, both public and private, has been altered in some manner, in some cases profoundly. This paper analyses the various changes to Old Age Security and other elderly benefits under the Mulroney and Chretien governments, culminating in the new Seniors Benefit. The Conservatives used ''social policy by stealth'' to make significant changes to elderly benefits, paving the way for the Liberals' plan to rationalize programs into a single income-tested Seniors Benefit. Arguments for and against the Seniors Benefit are considered. The Canada Pension Plan also is under scrutiny by the federal and provincial governments, which are considering two routes to reform - a move from paygo to partial funding, including a more rapid ramp-up in contribution rates, and various options to trim benefits.