Starting this week, (CPPIB) will receive and invest additional Canada Pension Plan (CPP) contribution amounts, helping to safeguard increased retirement income for current CPP contributors and future generations.

Federal and provincial governments decided in 2016 to expand the CPP to provide enhanced future benefits for workers who contribute, creating a stronger foundation for retirement. As the investment manager of the CPP Fund, CPPIB is responsible for prudently investing the additional contribution amounts arising from the enhancement to the CPP. CPPIB started investing CPP contribution amounts 20 years ago. Both the base CPP and additional CPP will have the full advantage of CPPIB’s global network, expertise, investment strategies and risk governance framework.

“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 & CEO, CPPIB. “We will invest the additional stream of CPP with the same attention to appropriate growth, risk control and transparency that Canadians count on.” CPPIB has designed an investment structure that will address the different funding requirements of the base CPP and additional CPP.

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.

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