Annual lists 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995

Ottawa, February 9, 1996
1996-009

Joint CPP Information Paper released, Public Consultations Launched

The treasurers and finance ministers of Canada, the provinces, and the territories today released the text of an information paper on the Canada Pension Plan at the conclusion of the second in a series of ministerial meetings to review the CPP.

The ministers announced that the paper will form the basis of federal/provincial consultations on the CPP to be held across Canada, beginning in mid-March. The views expressed through the consultations will guide Ministers as they consider changes to the Plan to ensure it can be sustained and will continue to provide pensions to Canadians in the future.

Quebec, which has its own plan, the Quebec Pension Plan, will conduct its own public consultations, within the province, in parallel with the consultations on the CPP.

The paper, An Information Paper for Consultations on the Canada Pension Plan, provides an overview of the CPP through a brief history and basic facts about the plan. It sets out the problems and challenges facing the plan today, in particular the issue of financing. Cost issues are examined and examples of changes that could reduce expenditures are explained.

The CPP is financed by contributions from workers and their employers and the self-employed. By law, every five years the CPP must be reviewed by federal and provincial ministers as joint stewards of the plan.

The 15th Statutory Actuarial Report on the CPP indicated that CPP expenditures are expected to be considerably higher in both the short and long terms than previously anticipated. The report predicted the current contribution rate of 5.6 per cent of average earnings would have to increase to 14.2 per cent by 2030 to finance the plan.

The CPP paper, which was finalized by ministers today, will be printed and available for public distribution by mid-February. Interested Canadians may obtain a copy on request from the federal Department of Finance or Human Resources Development Canada in Ottawa as well as from their provincial or territorial finance or treasury departments.

The paper will also be posted on Internet at http://www.fin.gc.ca/. Further details as well as a schedule of public consultations on the CPP will be announced shortly.