How can such a devastating cover-up succeed?
While the evidence is overwhelming, as soon as it is suggested that hundreds of Canadians must be complicit in this cover-up, most associates become highly skeptical. How could our actuarial profession, mainstream media, CBC, all MPs, all MPPs (except Premier Smith), and numerous otherwise benevolent organizations abandon their mandate, thereby abusing 99% of Canadians, most struggling?
Here is how and why this cover-up has succeeded:
Lobbyists have tremendous influence
Lobbyists are unethical, educated, knowledgeable, persuasive economists, actuaries and policy experts who are well paid to use devious means to convince politicians that certain legislation would benefit all Canadians, not just their employer. They usually represent and industry of company. Busy politicians have little time to investigate all issues so they rely on lobbyists to educate them.
Recent data shows lobbyists had 31,058 recorded lobbying meetings in one year with federal officials. The financial industry is the most active lobbying industry in Canada. They are eager to maintain their 47% share of all corporate profit. The evidence leads one to believe they have used fallacious but convincing arguments regarding suppressing the news of the CPP’s surplus and potential. Politicians “drank the Kool-Aid” and all MPs now refuse to even acknowledge the CPP’s $500 billion surplus, even though it could lead to considerable improvements in the lives of 99% of Canadians.
Individual citizens or citizen groups rarely meet with ministers. When I met my three of my four MPs, they all agreed to pass my findings on the CPP’s surplus to their party;s Finance critic. Nothing more happened.
My fourth MP, the principled Jane Philpott, was ejected from the Liberal Party because she acted too ethically. She disobeyed Prime Minister’s demand to ignore rampant corruption by SNC-Lavalin. After receiving a presentation regarding the CPP’s surplus, Ms. Philpott’s final words were “Disgraceful lobbyists.”
Think tanks only advocate for the wealthy
Ten years ago, I naively thought think tanks were the ultimate authority, packed with scholars who analyzed complex issues and arrived at the best solution for all Canadians and Canada. Upon seeing their analysis of the CPP, packed with misinformation, I researched who funds Canadian think tanks.
On Think Tanks (OTT) is an international organizations dedicated to exposing how transparent think tanks are worldwide. Astonishingly, they report that Canada is less transparent than the US and the UK. Below is a report showing how much each Canadian think tank reveals who funds them.
The think tank that reveals the sources of all funding receives a five-star rating. The think tank that reveals nothing about who funds them receives a zero-star rating. All of the bottom half of the table have received details regarding the CPP’s surplus and potential. None have responded or acted, thereby contradicting their alleged mandate. It is probable that the hidden funding for think tanks with few stars is from the financial industry.
Malcolm Hamilton, the senior actuary who failed in his 40-hour attempt to muzzle my findings, is associated with the C.D. Howe Institute. In 2020, they published a misleading report that claimed there is giant risk associated with the CPP, when it had a $300 billion surplus. The C.D. Howe Institute hosts 90 meetings a year that are mysteriously “off-the-record”. No one, including gullible politicians, will ever know what was discussed.
Regrettably, politicians use think tanks extensively to formulate government policy. Globe and Mail reporter Konrad Yakabuski explains.
“Between 2000 and 2015, representatives from Canada's 10 leading think tanks appeared at least 216 times before parliamentary committees and were cited in the Canadian media almost 60,000 times. It gave them and their research priceless exposure and influence in shaping government policy.
But at what price to Canadian democracy?
There is little doubt that the research conducted by Canadian think tanks often enriches public-policy debates. While they claim to be independent, however, most think tanks rely on funding from wealthy benefactors, corporations, unions or lobby groups seeking to push their own causes.
In April 2017, the average transparency score among the top 10 was a miserable 1.5 stars.”
Is CARP corrupt?
The Canadian Association of Retired Persons, CARP, is Canada’s most influential advocate for seniors. In 2018, based on my research, their advocates asked Finance Minister Morneau to eliminate a vicious 76% clawback on low-income seniors. He listened and, in his March 2019 Budget, he eliminated the clawback. Low-income seniors now receive $440 million more per year in GIS funding. Mr. Morneau has stated, “CARP has 330,000 members and 98% vote. We listen.” CARP is, by far, the most influential advocate for seniors in Canada.
CARP’s website states,
“Time and time again our members tell us that financial security is their top concern. Pension protection is a concrete way to effect real change for seniors at no cost to taxpayers.”
Yet, even though seniors deserve roughly $60 billion from the CPP’s surplus, CARP has remained curiously silent. Despite our successful partnership in eliminating a 76% clawback imposed on low-income seniors, CARP did not respond to me for years regarding the CPP’s surplus. I even offered to debate the existence of the CPP’s surplus and potential with any actuary CARP chose, in a CARP webinar.
CARP’s failure to advocate for seniors has had devastating consequences. With a no-risk $200 billion surplus distribution, Canada’s seniors would receive roughly $60 billion in total, $10,000, on average to each of six million seniors. CARP’S 300,000 members alone would receive $3 billion. CARP has acted as if the financial industry has given them a multimillion-dollar annual donation with one condition - Never mention the CPP’s surplus and potential.
Angered by the discrepancy between CARP’s mandate and their inaction, CARP’s I recently threatened to add CARP executives to The Reverse Order of Canada List. It is a list of those who have done the most to deprive millions of Canadians of deserved benefits. This threat finally received a response from CARP of “We never knew.” Then CARP sent me an evasive email pathetically defending their inaction. CARP would threaten a libel lawsuit for defamation if my Reverse Order of Canada List threat was based on false claims.
CARP has played a significant role over the past two decades advocating for stronger protections for members of defined-benefit (DB) pension plans in Canada, especially when companies became insolvent and pensioners faced losses. Thanks to CARP, members of DB plans enjoy better protection when a company goes bankrupt. However, almost all private sector pension plans have switched from a DB format to a DC format. Public sector pension plans have near-zero risk because they are backed by our government.
CARP’s efforts to secure DB pension justice have not and will not help any Canadian pension plan members. Why did they not direct their substantial efforts towards advocating for a CPP surplus distribution? Instead of securing zero help for seniors, they would have secured $60 billion for seniors.
CANAGE and Probus are two other groups that represent seniors. Despite repeated pleas from me, they have also failed to take action on an issue that would bring $60 billion to six million seniors, many struggling.
Numerous otherwise benevolent organizations have joined this cover-up
The influence of the financial industry must be enormous. I have also sent these details to CFIB, Canadian Chamber of Commerce, United Way, Generation Squeeze, Democracywatch.ca, Evidence for Democracy, Broadbent Institute and many more. I suspect the financial industry has accompanied their “donation” with a message like the following:
“Please meet your mandate and advocate strongly against any injustice you find. However, never mention the CPP’s surplus. If you do, your annual donation stops.”
When these otherwise reputable organizations never mention any existence of a cover-up, Canadians understandably conclude we are not being abused. These organizations not only fail to advocate. They lull Canadians into assuming there is no cover-up and no CPP surplus. This makes the job of the whistleblower even more challenging.
Executives in these organizations may have decided this donation/bribe will considerably help them accomplish their goals in all areas except revealing the CPP’s surplus. Or the donation/bribe may have mostly ended up in their own bank accounts as a bonus payment.
There is nothing illegal regarding this unwritten agreement. It is not a bribe. It is merely an understanding. In the event of an investigation, participants have little to fear. However, our CRA does frown on non-profits and charitable organizations that publish a mandate, collect membership fees or donations and then ignore their mandate.
If you have doubts about these accusations, you may want to contact them yourself, alluding to this website’s findings and asking them why they are not advocating agressively for CPP reform.
Goliath is too powerful
Canadians suspect that, if they offend the perpetrators of this cover-up, they risk job loss (two already have), funding loss, reputation loss and more. They feel that their lone voice would have little chance of achieving success in combatting such a massive cover-up. And it would require hundreds of hours of investigation and advocacy with little chance of success.
As a retiree, I have the time, a professor’s pension, a deep concern for those two million fellow seniors living near the poverty line, and a passion for justice. This quote from The Economist summarizes the injustice.
“The marginal benefit of an extra $1,000 is greater for the poor than the rich. A hungry family might buy food for a month; a banker might blow that amount on a single dinner, not including the wine.”
Recall that 15,000 bank executives recently received a bonus payment averaging $1.8 million each while 43% of Canadians are within $200 of insolvency.
Canadians care. For example, the Markham Stouffville hospital has 920 unpaid volunteers enrolled to help. If only some volunteers would join the fight to combat this CPP injustice. Politicians should be bombarded Canada-wide with emails shaming them into action. The impact would be 1,000 times more helpful than a volunteer working at a hospital.
If young Canadians stop investing, stock prices will decline
Most Canadians educated enough to understand these details have substantial savings invested with the financial industry. If younger Canadians decide to stop investing because the CPP will eventually give them a $100,000 CPP pension, based on the law of supply and demand, stock prices will decline. This fact has probably deterred some would-be champions of CPP justice from joining the protest.
The “save-it-for-a-rainy-day” argument
Finance Minister Freeland, Kristen Underwood, Director General, Seniors and Pensions Policy Secretariat and CARP’s president have all claimed the CPP’s surplus should remain untouched in case CPP Investments ceases to invest so successfully. Recall that the actuarial guideline for surplus distribution is a 25% surplus and the CPP now has a 200% surplus.
For the next 10 years, based on Table 10 of our Chief Actuary’s 32nd Actuarial Report, contributions to the $781 billion fund will exceed pensions.
This means even if CPP Investments achieves a 0 % return for the next 10 years, our CPP fund will increase in value.
A no-risk $200 billion CPP surplus distribution would both leave a $300 billion surplus in the fund and give 99% of Canadians huge benefits.
With authorities only providing this one flimsy reason for not distributing the surplus, Canadians should be very suspicious.
Of course, the real reason authorities refuse to discuss the CPP’s surplus - it would decrease the greedy financial industry’s profit and decrease employment for actuaries. While probably all politicians know this, only Premier Smith has decided to combat it.
Rampant corruption happens in Canada
Some Canadians reject the idea of a cover-up on this issue because it allegedly has too many participants who are abandoning their mandate, probably for cash.
A similar cover-up involving hundreds of participants has already happened in Canada. From 2011 to 2015, The Charbonneau Commission investigated corruption in the construction industry in Quebec.
It found that:
construction companies often pre-arranged who would win public contracts.
public works in Montreal were inflated by roughly 20–30%.
Engineering firms and contractors made illegal donations to political parties and used straw donors (employees reimbursed for donations).
Municipal parties were heavily implicated.
Corruption was exposed at multiple levels of government.
Problems were found in municipal governments, engineering consulting firms, construction companies and political party fundraising.
Several public officials were later charged or convicted.
Probably hundreds of Canadians were aware of this corruption. Yet, it was ongoing for 20-25 years. This CPP surplus cover-up has been ongoing for roughly 10 years.
The Sponsorship Scandal was another large Canadian cover-up. It involved the misuse of federal funds intended to promote Canadian unity in Quebec. Investigations uncovered fraud, political patronage, and weak oversight, leading to criminal convictions, a public inquiry, and ultimately a change of government.
As shown earlier, Canada’s banks, which most Canadians wrongly assess as highly ethical, have all been fined hundreds of millions of dollars for failing at investor protection. If it means more profit, and relatively minor penalties, banks have no qualms about using devious means.
Politicians are our referees in life. Where are you?
In my youth, I played many sports. Without a referee, it was chaos. With a referee, justice almost always prevailed, the better team usually won and the experience was enjoyable.
As we combat our struggles in life, politicians and bureaucrats are our referees. Their decisions can determine our quality of life. If they serve us well, life can be good. If not, life can be difficult.
Imagine Toronto is playing Edmonton for The Stanley Cup and referees are bribed to favour one team. If fans discovered this, the life of the referee would be in grave danger.
Yet the evidence indicates our referees in life - our Prime Minister, MPs, MPPs, actuaries, media, and numerous organizations have accepted the equivalent of a bribe and abandoned 99% of Canadians. Premier Smith is the lone politician who refuses to cooperate.
Canadians are somewhat satisfied with capitalism. Walmart, Costco, and Dollar Stores give us reasonable products at low cost. Then what are Ms. Freeland and Mr. Carney talking about?
Here you will find convincing evidence that there is an insidious cover-up being engineered by three powerful industries. The motivation is there because at least $170 billion of Canadians’ deserved money, and much more, is at stake.