After considering feedback from its online consultation, British Columbia will support the Canada Pension Plan enhancement.
The consultation, which was launched on July 15, 2016, received nearly 2,500 responses. Most (65 per cent) respondents supported the expansion while 32 per cent did not and a small number didn’t indicate a preference.
Read: B.C. CPP consultations raise ‘red flags’ as approval deadline looms
“It was important that we take the time to talk to British Columbians about the Canada Pension Plan enhancement, to make sure both employers and employees understand what the proposal means in terms of contributions and benefits,” B.C. Finance Minister Michael de Jong said Tuesday in a release.
“After hearing from thousands of British Columbians and Canadians, I’m confident the changes will have a meaningful impact on retirement income security at an affordable contribution rate.”
Read: B.C. government doing little to solicit feedback on CPP enhancement
“I would like to thank Minister Michael de Jong once again for his leadership in helping us come to an historic agreement on a stronger CPP last June, and for his government’s full support of enhancing retirement security for Canadians,” federal Minister of Finance Bill Morneau said in a release.
Without B.C., Canada wouldn’t have received the requisite two-thirds of provinces representing two-thirds of the population to proceed with the expansion.
The CPP deal reached in June would increase income replacement to one-third from one-quarter of pensionable earnings, while raising premiums to 5.95 per cent from each employers and employees over a five-year period beginning on Jan. 1, 2019.
Read: ‘Exciting time for retirement’ as CPP deal signals premium boost to 5.95%
On Monday, the federal government tabled a Notice of Ways and Means Motion for the tax measures that are part of the agreement in principle on CPP enhancement, according to a release from the Department of Finance. Morneau and Jean-Yves Duclos, the Minister of Families, Children and Social Development, will soon introduce legislation to implement the enhancement.
Note: This article was updated at 2:50 pm with comments from the federal government.