Annual lists 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995

Ottawa, December 10, 2001
2001-117

Canada Pension Plan Financially Sound: Chief Actuary

The Canada Pension Plan (CPP) is financially sound, according to the 18th Actuarial Report on the Canada Pension Plan.

Chief Actuary Jean-Claude Ménard’s report on the financial state of the CPP was tabled in Parliament today by Finance Minister Paul Martin.

"Canadians can continue to have confidence in the Canada Pension Plan and can count on it as an important part of their retirement plan," said Minister Martin. "This report confirms that the joint federal-provincial actions taken in 1998 to ensure the long-term viability of the CPP have paid off."

One of the key changes in 1998 was the introduction of steady-state financing and the investment of funds in a diversified portfolio of assets to generate a higher long-run rate of return. Under steady-state financing, the contribution rate is scheduled to rise to 9.9 per cent in 2003. The 18th report confirms that this contribution rate is expected to be sufficient to sustain the CPP indefinitely.

The 18^th report will be reviewed by independent actuaries, as was the case with the 17th report. Reports are prepared every three years, as required by the CPP legislation.

The report is available on the Internet at:

www.osfi-bsif.gc.ca/eng/office/actuarialreports/index.asp

___________________
For further information:

If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site at http://www.fin.gc.ca/scripts/register_e.asp