Canada Pension Plan is financially sound – General – Brief Article
OTTAWA — The Canada Pension Plan is financially sound and is on track to provide retirement pensions in the future, federal and provincial ministers of finance announced following the conclusion of their financial review of the CPP.
The review confirms that the 1997 federal-provincial agreement to restore the financial health of the CPP has put the plan back on sound financial footing. On January 1 the contribution rate was increased to 9.9 per cent, which was the final step in fully implementing the 1997 reforms.
Finance Minister John Manley said: “The changes agreed to five years ago and now fully in place will sustain the CPP well into this century. The three actuarial reports prepared since the reforms, as well as our current review of the plan and the review we undertook three years ago, confirm this conclusion,” he added.
Federal and provincial Ministers are required by legislation to review the plan’s long-term financial health every three years. In their latest review, they have agreed that no changes to benefits or the contribution rate are required–the 9.9-per-cent contribution rate should be sufficient to sustain the plan indefinitely. 613-996-0533
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