MONTREAL - The Charest government is warning Ottawa not to take any decision on old age security that could impact the pensions of seniors or the coffers of the Quebec state.
Speaking on Wednesday, Quebec Minister of Employment Julie Boulet expressed her unease with the federal government's presumed plan to raise the age or retirement from 65 to 67.
Boulet warned that the decision could have a considerable impact on the province's finances, as her department would need to provide two additional years of payments without federal support. While her department could make cuts, Boulet said that some payments would need to continue for the neediest seniors.
With an economy still recovering from recession, Boulet warned that Ottawa should consult with the provinces before making a decision that could make the economic situation "more fragile."
Earlier on Wednesday, Parti Quebecois chief Pauline Marois warned that Ottawa was looking to put the provinces in front of a "fait accompli," with little consultation.
With the first hints of a plan to reduce OAS payouts revealed by Prime Minister Stephen Harper at a summit in Davos last week, interim Liberal leader Bob Rae has been hammering the Conservatives on the issue.
On Wednesday, Harper called the Liberals' attack "fear-mongering."
In less than a week, 12,000 Canadians have signed an online petition started by the Liberals protesting potential cuts to OAS.
The federal government spent $36 billion dollars on old age security in 2011, that amount is expected to raise as the population ages to $108 billion in 2030.
OAS keeps seniors out of poverty: report
A new report prepared for the government says old-age benefits are a key factor in keeping seniors out of poverty.
The 80-page report says without OAS or the Guaranteed Income Supplement, more than a third of women and a quarter of men in their 60s would fall under the poverty line.
"The OAS programs have a significant influence on in the incidence of low income," wrote the report's author, Richard Shillington.
By region, seniors in the Maritimes and the North have the most need for government assistance.
Women, who live longer on average, have more need for benefits.
The paper, called Evaluation of the Old Age Security Program was written by Shillington in 2009, and prepared for the Human Resources Department.
The paper was obtained by the Canadian Labour Congress under an access-to-information request and given to The Canadian Press.
With files from The Canadian Press