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SpanishCanada Pension Plan reform to boost assets above $15 trillion by 2090
The upcoming enrichment of the Canada Pension Plan will help fuel a 48-fold boost to the public fund’s assets over the long haul – to more than $15.8 trillion by 2090, according to federal calculations.
In comparison, the public plan’s investment manager reported $326.5 billion in net assets at the end of the first quarter of 2017-18.
Long-term projections on the evolution of the CPP’s post-reform assets were included in an internal briefing note prepared for federal Finance Minister Bill Morneau earlier this year. The memo referred to numbers published last October by the Office of the Chief Actuary.
The figures accounted for the impact of a CPP deal reached last year between the federal government and the provinces. They agreed to changes that will increase Canadians’ retirement benefits through the public plan by raising contributions as of 2019.
CPP reform was a key goal for Ottawa and provinces like Ontario as a way to provide more financial security for future generations of retirees.
But it has also faced significant criticism. For example, advocates for small businesses have warned it will be devastating for employers and drive up costs in what they have described as a “payroll tax.”
Read full content here: Global News
