Provinces Call for Enhanced CPP
Multi-pronged approach needed to solve savings challenge
Today the Provinces of Prince Edward Island, Nova Scotia, New Brunswick, Manitoba, British Columbia and Ontario called on the federal government to keep a modest CPP enhancement on the table as part of a package of reforms that would make saving for retirement easier, more affordable and more secure for Canadians.
The provinces would like to see measurable progress on the following reforms at the upcoming Finance Ministers' Meeting in Kananaskis, Alberta:
- A modest, phased-in, fully-funded enhancement to Canada Pension Plan (CPP). Any CPP changes would have to be affordable for both employees and their employer.
- Pension innovation to provide more Canadians with access to low-cost pensions. A harmonized, pan-Canadian framework should be developed, focusing on simplicity and plan member protection.
The provinces expressed concern at recent statements by the federal government suggesting that a modest CPP enhancement was no longer being considered. The provinces have heard strong public support for such an enhancement as an integral part of the retirement income solution. Progress on CPP should not be deferred.
Jennifer Macdonald-Donovan, Prince Edward Island
Valerie Bellefontaine, Nova Scotia
Andrew Chornenky, Ontario
Naline Rampersad, Manitoba
Sarah Harrison, British Columbia
“Canadians absolutely have the right to expect a strong retirement income system. It is my sincere hope that we can have an open and productive discussion on options to improve the CPP in order to deal with this vitally important issue.”
Prince Edward Island Finance Minister Wes Sheridan
“The Canada Pension Plan, together with Old Age Security and the Guaranteed Income Supplement, has contributed greatly to ensuring that Canadians can retire with dignity and with modest income security. We need to build on that success.”
- Nova Scotia Finance Minister Graham Steele
“The CPP provides a secure, fully indexed, defined benefit pension to virtually all working Canadians and is fully portable across Canada. While we fully support more private-sector pension innovation, it should not be used as a reason not to make progress on CPP.”
Ontario Finance Minister Dwight Duncan
“Manitoba's position is to move toward a modest, phased-in and fully funded expansion of the existing Canada Pension Plan. It is the most practical approach to strengthen the retirement income system in Canada.”
- Manitoba Finance Minister Rosann Wowchuk
“Making progress on a moderate expansion of CPP is important for the long-term adequacy of Canada's retirement income system. We need to keep moving forward in determining what that expansion should look like.”
- British Columbia Finance Minister Colin Hansen