Pension Income Splitting Principle Unchallenged at National Conference
The principle of legislating pension income splitting for senior Canadian couples went unchallenged at the
national conference on pension tax reform “Pension Tension” that was held on October 3, in Ottawa.
The conference explored the issue of pension splitting that would greatly benefit couples whose difference in their income is large enough to put them in different tax brackets. Under Canada’s Income Tax Act, a single-income couple pays significantly more income tax than a couple who draws the same combined household income from each of the individuals’ pensions.
More than 30 MPs from across the party spectrum showed up at the threehour conference that was organized by a common front of 17 seniors’ organizations, which includes FSNA, and during which there were discussions concerning methods of implementation of pension income splitting.
The Hon. Garth Turner, who co-chaired the conference and who was then sitting as the Conservative MP for the Halton County, posted a video of the event on his Web site. Members can access the video by scrolling down his Webcast News page and clicking the picture appearing under the heading “MPtv – October 3rd Webcast”.
Amending the Income Tax Act to allow pension splitting would be consistent with FSNA’s Standing Resolution No. 21 that calls for the superannuation acts to be amended “to allow for the spousal splitting of retirement pensions with or without marriage breakdown along the lines permitted by CPP/QPP”.
It is hoped that these actions will persuade the Finance Minister Jim Flaherty to address the issue of pension splitting in his spring budget.
Lobbying activities for pension splitting have been conducted by FSNA on a common front basis with the following retirees’ organizations:
• Air Canada Pionairs
• Alliance of Seniors
• Allstream Pensioners’ Association
• Bell Pensioners’ Group
• Canada’s Association for the Fifty-Plus
• Canadian Activists for Pension Splitting
• Canadian Association of Retired Teachers
• CBC Pensioners National Association
• COMTECH Communication Technologies Credit Union
• FADOQ – Mouvement des Aînés du Québec
• General Motors Salaried Retirees Association
• Police Retirees of Ontario Inc.
• Real Women of Canada
• The Retired Teachers of Ontario
• The Royal Canadian Legion of Canada
• SenTax
