The National Union of Public and General Employees (NUPGE) is launching a campaign to fight the proposed amendments to the Canada Pension Plan (CPP) by the federal government.

James Clancy, president of the 340,000-member union, says the changes being presented by the Harper government are being touted as positive reforms but says their intent is to keep older workers in the labour force longer.

"The proposed changes have barely received any media coverage yet they will impact every Canadian outside of those already collecting their pension," he notes.

NUPGE claims the changes unveiled last May would transform the dream of "Freedom 55" to a stark reality of "Freedom 70" for millions of Canadians if they take effect in 2012.

If enacted, this is how the CPP as it now exists will change:

1. Workers would no longer be required to quit work to draw early CPP retirement benefits at age 60. Starting in 2012, they could draw early benefits and continue working until age 65 (with both employees and employers continuing to make contributions). They could then collect additional CPP benefits at a rate of 2.5% of income up to the maximum CPP pension ($10,900 as of 2009).

2. Workers who currently choose to retire early receive benefits that are reduced by 0.5% for each month they retire early between 60 and 65. This adds up to a 30% reduction over the full period. As of 2012, the federal government is planning to boost the penalty to 0.6%, which translates into a 36% cut for everyone who retires at age 60 instead of 65.

3. The plan also extends the maximum CPP pension age to 70 by offering higher pensions to those who remain in the workforce past age 65. Workers would get an extra 0.7% for each month that the CPP benefit is not taken after age 65. By age 70 this would add up to a 42% increase. The drawback, of course, is that anyone waiting until 70 to collect benefits has far fewer years left to draw a pension before they pass away.

Clancy says the net effect of the changes would be to turn Canada's national pension policy into a weapon against older workers.

"Rather than changing the CPP so it becomes a national policy instrument to increase the retirement age in Canada, our federal government should instead be looking at changing CPP in order to provide greater retirement security to all workers," he argues.

"It’s clear that the level of CPP benefits today is too low. It’s equally clear CPP will be the only real source of retirement income for over six million Canadians who do not have workplace pensions or RRSP savings."

Download NUPGE pamphlet: Forget 'Freedom 55' - Canada's retirement security crisis