MPs say N.B. constituents worry about pension cuts

New Brunswick Members of Parliament say they've have been getting a lot of calls and emails from constituents worried about their federal pension benefits.

Prime Minister Stephen Harper told the World Economic Forum in Switzerland last week that the retirement income system needs "transformative change" — an expression that has been debated since Harper made his comments.

The Conservative MP for Tobique Mactaquac Mike Allen said people are jumping to conclusions that the retirement age is going up to 67 or that people with private pension plans will see their federal benefits scaled back.

"Now is the time if we're going to be a responsible government to look at what the changes maybe should be in the long-term and have a review of it," Allen said.

"We have to say in the long-run, there's not going to be any change," Allen said. "There's not going to be change to the people who are receiving it and the last time the age was changed, it was transitioned from 70 to 65 and it happened over a five-year period."

Acadie-Bathurst NDP MP Yvon Godin said the whole idea is disrespectful to aging Canadians.

"How many people do we have at the age of 63, 64, especially working in manual work and very tired of working? They're going to end up on welfare and it's the provincial government that's going to pay for it," Godin said.

Godin said Harper should have told Canadians about any problems with the old age security program before telling the World Economic Forum.

"We see it again this week, when he came in the House of Commons to put a bill on pensions, he only put it on Monday and it was finished last (Wednesday) night, we had to vote on it," Godin added. "It's not even a real debate in the House of Commons."

Beausejour Liberal MP Dominic LeBlanc suggested Harper is trying to scare Canadians by talking about 2030 — when the program costs will peak.

LeBlanc called the Conservatives "dishonest" by saying during the election campaign cutting transfers to individuals — such as pensions and employment insurance wouldn't happen, then last week telling the forum in Europe about the transformative change needed without telling Canadians.

Spending money

"This is the ideological cutmaster who doesn't believe the public should finance these programs," LeBlanc said.

LeBlanc questioned spending federal money on stealth attack fighters or G-8 summits, for example, when money could be cut from seniors who depend and have planned on it.

The Conservatives are introducing pooled-registered pension plans for people who are self-employed or not covered by a workplace pension.

The plans will have defined contributions, but won't guarantee specific returns. Employers will have to automatically enroll all employees, but people would have the ability to opt out.

Allen said even he would have a hard time supporting any reduction in benefits for at least 10 years.

"A change in this program is not going to happen in the short to medium term. It's going to take a while and there will be a transition phase of a number of years so that people can properly plan for it," Allen said.