Provincial and territorial finance ministers reached an agreement on conditions to expand the Canada Pension Plan (CPP) on Friday.
The ministers agree that any CPP enhancement should be responsible and fully funded and focus on today’s workers; moderate the short-term effects on businesses, families and the economy; improve the future retirement incomes of middle-income earners; and protect lower-income workers.
They recognize the need to continue discussions on a strategy to help improve the retirement income system to meet the needs of today’s workers that includes both the introduction of pooled registered pension plans and options for an enhancement to the CPP.
The ministers recognize that these discussions should take into account the state of the economy and the funding requirements of the existing CPP program.
They will report back on their discussion on the objectives and possible options to enhance the retirement income system to support premiers’ discussions later this fall.
CARP was pleased with the news.
“CARP members will welcome the finance ministers’ support for CPP enhancement—even modestly,” said Susan Eng, vice-president, advocacy, for CARP. “Let’s hope they are able to convince the federal government to finally keep its three-year-old promise to move ahead on this critical improvement to Canada’s retirement income system.”
Related articles: