Parliamentarians Advance Debate on a Stronger Canada Pension Plan and a More Secure Retirement for Canadians

October 21, 2016 – Ottawa, Ontario – Department of Finance Canada

Middle class Canadians are working harder than ever, but many are worried that they won’t have enough put away for their retirement. One in four families approaching retirement—1.1 million families—are at risk of not saving enough. That’s why the Government of Canada is committed to helping Canadians achieve their goal of a safe, secure and dignified retirement, and has worked with the provinces and territories to strengthen the Canada Pension Plan (CPP).

With today’s debate on second reading of Bill C-26, Parliamentarians have the opportunity to advance the implementation of the agreement that Canada’s governments came to on June 20, 2016 to enhance the CPP to give Canadians a more generous public pension that will help them retire in dignity.

Quote

"By supporting this legislation, Parliamentarians have the historic opportunity to boost the level of CPP benefits that will be available in the future to ensure that future generations of working Canadians can count on a more generous public pension in their retirement years. In short, there will be more money from the CPP waiting for Canadians when they retire, so they can focus on the things that matter—like spending time with their family—rather than on worrying about making ends meet. I would like to once again thank Canada's governments for working together in pursuit of this achievement, and encourage my Parliamentary colleagues to join in our efforts to provide Canadians with a stronger CPP."

- Bill Morneau, Minister of Finance

Quick Facts

  • Once fully phased in, the CPP enhancement will increase CPP benefits by as much as 50 per cent.
  • The CPP provides a secure, predictable benefit, which means that Canadians can worry less about outliving their savings, or having their savings impacted by significant market downturns.
  • CPP benefits are fully indexed to prices, which reduces the risk that inflation will gradually erode the purchasing power of retirement savings.
  • The CPP is a good fit for Canada’s changing job market. It helps to fill the gap left by declining workplace pension coverage, and it is portable across jobs and provinces, which promotes labour mobility.
  • The CPP is a large program with millions of contributors, which allows the CPP Investment Board to take advantage of economies of scale in order to deliver strong net returns.
  • With the automatic collection of contributions for all workers, the CPP is a simple way to save.

Associated Links

Contacts

Annie Donolo
Press Secretary
Office of the Minister of Finance
613-769-7187

Media Relations
Department of Finance Canada
613-369-4000

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