Prime Minister Stephen Harper's musings about possible changes to Old Age Security have resulted in a public backlash -- and complaints from his own MPs. Conservative MPs have been overwhelmed with emails and phone calls from constituents who have been concerned about their retirement pensions since Harper mused on the need to revise OAS last week in Davos.
Sources have told CTV News that MPs told Harper during a Conservative caucus meeting Wednesday that reforming pensions "is not a vote winner" and complained they were taken by surprise by the plan.
The government has since toned down their language from the "transformative" changes that Harper spoke about in Davos.
"It's a review . . . to make sure we have a sustainable, long-term fiscal plan for our country," Finance Minister Jim Flaherty told CTV.
Interim Liberal Leader Bob Rae has been hammering the Conservatives for the past week on the issue.
Earlier on Wednesday, Rae said only a public opinion backlash can stop the Harper government from cutting OAS.
It is believed the Conservatives had planned to raise the age of eligibility for OAS to 67 from 65. The government has not denied those reports when questioned by the opposition or the media.
In less than a week, 12,000 Canadians have signed an online petition started by the Liberals protesting potential cuts to OAS.
Rae warns that raising the age of eligibility for OAS would cut seniors off of the Guaranteed Income Supplement and download costs on to provincial governments.
Harper insists seniors currently receiving benefits and those about to retire won't lose a single dollar.
OAS keeps seniors out of poverty: report
A new report prepared for the government says old-age benefits are a key factor in keeping seniors out of poverty.
The 80-page report says without OAS or the Guaranteed Income Supplement, more than a third of women and a quarter of men in their 60s would fall under the poverty line.
"The OAS programs have a significant influence on in the incidence of low income," wrote the report's author, Richard Shillington.
By region, seniors in the Maritimes and the North have the most need for government assistance.
Women, who live longer on average, have more need for benefits.
The paper, called Evaluation of the Old Age Security Program was written by Shillington in 2009, and prepared for the Human Resources Department.
The paper was obtained by the Canadian Labour Congress under an access-to-information request and given to The Canadian Press.
Andrew Jackson, chief economist of the Canadian Labour Congress, says the number of seniors receiving pension benefits will double by 2030.
"A lot of people approaching retirement are not on employer-pension plans which previous seniors were," he added on CTV's Power Play. "And a lot of people are up to their ears in debt and are not saving very much."
Jackson said working longer is not an option for all seniors and if the age of eligibility goes up, it will hurt those in the lower-income brackets the most.
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Source: CTV
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