Strings attached

Re: If Only, letter to the editor, Oct. 20.

Letter writer John Tak, who is such an admirer of the Canada Pension Plan, suggests “no one in their right mind would say no to a defined benefit pension plan” (implicit ly including the CPP). Yet, for Canadians making a middle- class or higher income, the CPP, at least as a retirement savings vehicle, is a terrible deal. This is because the meagre tax credit given for one’s mandatory CPP “premium” ( read “tax”) is much lower than the marginal rate of tax assessed on that portion of one’s income. ( The new CPP will do away with this particular inequity, but only on the “enhanced” portion of the CPP tax.)

In addition, while Tak might not care in his own case, many of us would prefer the opportunity to retain our own rights to our money. If I decide to give some savings from my registered retirement plan to a charity, or to my favourite niece, I’m free to do so. Try asking the federal government if you can get half your CPP as a lump sum because you’d like to do something else with it. Tak should show a little less ‘ blind faith’ in his government; it hasn’t earned it. Robert Armstrong, Toronto.