As new, enhanced Canadian Pension Plan contributions come into effect this year, the Canada Pension Plan Investment Board will receive and invest the increased funds.

“Over the past year, CPPIB has worked to ensure that both the base CPP and the additional CPP amounts will be managed efficiently and with a view to the opportunities that may be created as the CPP fund grows,” said Mark Machin, president and chief executive officer of the CPPIB, in a news release. “We will invest the additional stream of CPP with the same attention to appropriate growth, risk control and transparency that Canadians count on.”

Read: Don’t miss these important pension and benefits dates for 2019

The CPPIB will be handling the different funding requirements of the base CPP contributions and the new inflow of funds from Canadians. “This structure ensures fairness between the base CPP and additional CPP accounts, and that both benefit from CPPIB’s strengths and have a widely diversified portfolio with appropriate distinct risk characteristics for each account,” according to the news release.

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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