Disgruntled pensioners seek full access
By Laura Cudworth Staff reporter
Feature
Disgruntled pensioners seek full access
Seniors with locked-in pensions aren’t satisfied with changes announced in last week’s provincial budget that would release 25 per cent of the funds.
“It’s an insult. It’s my own money. I’m not sure why they don’t grant 100 per cent,” said Bill Nafziger from his Milverton home this morning.
Mr. Nafziger has been leading the charge locally to get locked-in pensions unlocked.
Last year, Mr. Nafziger was able to access just 7.1 per cent of his Krug Furniture pension.
The idea is that the pension is supposed to last for the rest of the retiree’s life, so small amounts are distributed over the years. Seniors say the system is paternalistic and they should be able to access the money or reinvest it.
A representative from CARP (Canada’s Association for the Fifty-Plus) said seniors are disappointed with the proposed release of 25 per cent and will continue to lobby for the full 100 per cent.
The organization is proposing 50 per cent be released when the pensioner turns 55 and the rest be released when the pensioner turns 65, said Bill Gleberzon, director of government relations.
When pensioners turn 90 the rest of the money is unlocked. However, if the pensioner dies, the money is unlocked immediately and goes to the spouse. The spouse is then taxed on the money as though it were income.
Once the provincial budget passes, seniors will able to access up to 25 per cent of the funds which brings Ontario up to the same rate as New Brunswick. Saskatchewan has unlocked pensions 100 per cent while Alberta and Manitoba have unlocked pensions 50 per cent upon retirement.
“The government has gone for the lowest unlocked amount, the same as in New Brunswick.“We’re going for what Saskatchewan has done,” Mr. Gleberzon said.
He added there could be more than a million seniors with locked-in pensions in the country and hundreds of thousands in Ontario.Last December, Hamilton East New Democrat MPP Andrea Horwath introduced a private member’s bill proposing seniors be able to access 100 per cent of their locked-in pensions.
Perth-Middlesex MPP John Wilkinson said at the time he wouldn’t support the bill but did believe there should be some changes including an easier process for seniors with financial hardships or health concerns to access more of the funds.
What has added insult to injury for many seniors with locked-in pensions was legislation in 1999 that gave MPPs a one-time opportunity to unlock their own pensions. There were 61 MPPs from all three parties who took advantage of the legislation
By Laura Cudworth Staff reporter
Feature
Disgruntled pensioners seek full access
Seniors with locked-in pensions aren’t satisfied with changes announced in last week’s provincial budget that would release 25 per cent of the funds.
“It’s an insult. It’s my own money. I’m not sure why they don’t grant 100 per cent,” said Bill Nafziger from his Milverton home this morning.
Mr. Nafziger has been leading the charge locally to get locked-in pensions unlocked.
Last year, Mr. Nafziger was able to access just 7.1 per cent of his Krug Furniture pension.
The idea is that the pension is supposed to last for the rest of the retiree’s life, so small amounts are distributed over the years. Seniors say the system is paternalistic and they should be able to access the money or reinvest it.
A representative from CARP (Canada’s Association for the Fifty-Plus) said seniors are disappointed with the proposed release of 25 per cent and will continue to lobby for the full 100 per cent.
The organization is proposing 50 per cent be released when the pensioner turns 55 and the rest be released when the pensioner turns 65, said Bill Gleberzon, director of government relations.
When pensioners turn 90 the rest of the money is unlocked. However, if the pensioner dies, the money is unlocked immediately and goes to the spouse. The spouse is then taxed on the money as though it were income.
Once the provincial budget passes, seniors will able to access up to 25 per cent of the funds which brings Ontario up to the same rate as New Brunswick. Saskatchewan has unlocked pensions 100 per cent while Alberta and Manitoba have unlocked pensions 50 per cent upon retirement.
“The government has gone for the lowest unlocked amount, the same as in New Brunswick.“We’re going for what Saskatchewan has done,” Mr. Gleberzon said.
He added there could be more than a million seniors with locked-in pensions in the country and hundreds of thousands in Ontario.Last December, Hamilton East New Democrat MPP Andrea Horwath introduced a private member’s bill proposing seniors be able to access 100 per cent of their locked-in pensions.
Perth-Middlesex MPP John Wilkinson said at the time he wouldn’t support the bill but did believe there should be some changes including an easier process for seniors with financial hardships or health concerns to access more of the funds.
What has added insult to injury for many seniors with locked-in pensions was legislation in 1999 that gave MPPs a one-time opportunity to unlock their own pensions. There were 61 MPPs from all three parties who took advantage of the legislation
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