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CPP Credit Splittiiing (DUPE) unfairness
I posted a message on this issue recently, but just wanted to share this weblink that shows that the government has known about this issue since at least 1997, and has chosen to do nothing about it:
ARCHIVED - Phase III Evaluation of Survivor Benefits and Other Features of Canada Pension Plan - May 1997
If you check out Chapter 5 of this weblink, Section E, they show a good example where pre-DUPE the male has 100% max CPP credits and the female has 92.7% (using the Child-Rearing Dropout or CRDO provision). After a DUPE, the male would decrease significantly to 82.5% of max (lower than the female's starting position) and the female would increase marginally to 96.3%.
The cause of this disparity is overlap and non-integration between the DUPE and the CRDO provisions, and as acknowledged by this report from 1997; the male contributor is disadvantaged and the real winner is the CPP account, as Credit Splitting reduces males' benefits by significantly more than it increases females' benefits (unanticipated cost savings).
ARCHIVED - Phase III Evaluation of Survivor Benefits and Other Features of Canada Pension Plan - May 1997
If you check out Chapter 5 of this weblink, Section E, they show a good example where pre-DUPE the male has 100% max CPP credits and the female has 92.7% (using the Child-Rearing Dropout or CRDO provision). After a DUPE, the male would decrease significantly to 82.5% of max (lower than the female's starting position) and the female would increase marginally to 96.3%.
The cause of this disparity is overlap and non-integration between the DUPE and the CRDO provisions, and as acknowledged by this report from 1997; the male contributor is disadvantaged and the real winner is the CPP account, as Credit Splitting reduces males' benefits by significantly more than it increases females' benefits (unanticipated cost savings).