The Senate is done with the issue of Canada Pension Plan retroactivity, recommending reform to the Finance Minister.

Now it must sit and wait to see what steps, if any, Jim Flaherty cares to take.

On March 11, the Senate National Finance Committee tabled its Report on the Financial Security for Seniors: Entitlements and Retroactivity Provisions under the Canada Pension Plan, analyzing the incidence of Canadian seniors who are eligible for, but not receiving, Canada Pension Plan (CPP) benefits because they have failed to apply for the plan's retirement pension.

"The federal government has stepped up efforts to inform seniors of their eligibility for the pension and how to apply," said Senator Joseph Day, chair of the National Finance Committee.

"Unfortunately, while the information campaign has reached some seniors, there remain many others who are living without money to which they are entitled through years of contributions to the Canada Pension Plan."

The Office of the Chief Actuary informed the committee last fall that, as of July 2005, it has identified 26,430 eligible CPP contributors aged 70 and over who had not yet applied for their retirement pension. The report of the senate Finance committee recommends that the federal government be more proactive in its efforts to inform Canadians of their entitlements under the CPP.

Currently, seniors who apply late for their retirement pension receive up to 11 months of retroactive payments. The Quebec Pension Plan, on the other hand, allows eligible applicants aged 65 and older to retroactively claim benefits for a period up to 60 months.

Witnesses presented committee members with a range of arguments for changing the retroactivity provisions of the CPP. The report recommends that the federal government consult with the provinces with the goal of increasing the retroactivity period.

"We heard a number of scenarios for different options - periods similar to what already exists, five years, like the QPP, up to full retroactivity," said Senator Terry Stratton, deputy chair of the committee. "The plan is co-stewarded by the federal government and the provinces, so it makes sense that they need to recognize this as an issue and hold consultations to determine what is best."

But Flaherty has no deadlines by which he has to take action. Senate communications officer Jean-guy Desgagne told Forever Young via email, "The report was presented to the Senate without requesting a government's response. Therefore, the government does not have to move on the recommendations of the report except to take it into consideration if she so wishes."

A Forever Young request to communications officers for an indication of the Finance department's views on the issue were not returned by press time.