When I spoke about improving the Canada Pension Plan, it was also with regard to increasing the income replacement rates. I think that it is a bad idea to increase the Guaranteed Income Supplement, because this is creating coordination problems with other sources of income. I would rather see the Guaranteed Income Supplement clawback rate drop so that people are subject to a 35% or 40% rate instead of a 50% plus 30% tax rate.
In any case, actuarial analyses will need to be done, if we are to improve the Canada Pension Plan. This will ensure the immediate entry of funds, at a time when grandfathering is delayed, which could help resolve the problem of equity of access to the plan because of the demographic imbalance and baby boomers.