Canadian Payroll Reporter

CPR_JULY_2013V2:Canadian Employer.qxd 13-06-19 4:36 PM Page 1 CANADIAN PAYROLL REPORTER PUBLISHED BY CANADIAN HR REPORTER www.payroll-reporter.com THE COMPLIANCE AND STRATEGY SOURCE FOR PAYROLL AND HR PROFESSIONALS 'Carve out' could result from CPP expansion: Expert Labour group says expansion will help Canadians, business group disagrees | BY ZACHARY PEDERSEN | In May, the CFIB published an update of its Forced Savings report, which originally looked at the IN DECEMBER 2012, Canada's finance impact of expanding the CPP in 2010. ministers announced they had a "way The report evaluated a "10-10-10 proforward" on expanding the Canada posal," which would hike CPP benePension Plan (CPP). fits by 10 percentage points from 25 Federal Finance Minister Jim Flaper cent to 35 per cent of maximum herty said officials would spend the pensionable earnings (MPE), raise next six months evaluating what a the MPE by $10,000 to $61,000 from "modest" CPP increase might look its current rate of $51,100, and implelike and explore whether the ment all of this within 10 years. economy would be strong enough to This is what a modest increase support such a change. would look like, the group claims, The Canadian Labour Congress adding it would (CLC) is one of end up costing the the largest propo"If the government is doing it economy 700,000 nents for an expansion, but and they're doing a good job... person years of employment over called the Decemit's a pretty good deal a 20 year period ber announcefor small- and medium-sized and decrease ment a "disapbusinesses." wages by 1.5 per pointment" cent. because a defini"One of the impacts of that would tive action plan hadn't been probe that as an employee, you would duced. actually see your take home income The CLC has proposed a gradual go down each year for 10 years," says doubling of CPP benefits over seven Dan Kelly, CFIB president. "So, on years. By increasing CPP contribuJan. 1, instead of looking forward to a tions by 0.43 per cent of pensionable small raise, you would actually see earning each year, the maximum CPP your take home income go down." benefit would rise from its current Critics may argue a CPP premium level of $12,150 a year to $24,300, the hike doesn't mean workers wouldn't group claims. still get a wage increase in the new On the other hand, the Canadian year, but Kelly counter argues that Federation of Business (CFIB) — one increased financial costs could limit of the main critics of a potential CPP an employer's ability to provide a increase — says any increase in CPP premiums is unaffordable and would result in job losses. continued on page 5 JULY 2013 INSIDE THIS ISSUE THE FUTURE OF QUEBEC'S RETIREMENT SYSTEM Expert committee releases report on retirement, defined benefit plans ..........3 NEWS BRIEFS Atlantic provinces examine changes to employment insurance • Number of EI recipients down for fifth month • Canadian pension funds total increases to $1.2 trillion • Tax refunds used to pay down debt: Survey ................................4 ASK AN EXPERT Is an ROE required when an employee requests salary deferrence?....................7 Commission for all staff: U.S. company Experts weigh pros, cons of approach | BY AMANDA SILLIKER | ALL EMPLOYEES AT software company Fishbowl in Orem, Utah, are paid a commission — from administration, finance and human resources to sales and customer support. "We put every member of the company — and we do mean everyone — on commission. In our opinion, every employee contributes to sales, so we pay everyone based on company revenues instead of using a more traditional bonus or profitsharing plan," said David Williams, CEO, and Mary Michelle Scott, presi- Canadian HR Reporter, a Thomson Reuters business 2013 continued on page 2

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