Minister of Finance, Bill Morneau tabled the Chief Actuary's 29th Actuarial Report on the Canada Pension Plan (CPP). This report confirms that if the base CPP is amended as per Division 19 of Part 6 of Bill C-74, the legislated contribution rate of 9.9% for the year 2016 and thereafter is sufficient to finance the base CPP over the long term. This report confirms that if the additional CPP is amended as per Division 19 of Part 6 of Bill C-74, the legislated first additional contribution rate of 2.0% for the year 2023 and thereafter, and the legislated second additional contribution rate of 8.0% for the year 2024 and thereafter, result in projected contributions and investment income that are sufficient to fully pay the projected expenditures of the additional Plan over the long term.
Bill C-74 amends the base and additional components of the CPP to:
- Remove the reductions in survivor benefits in both the base and additional CPP for individuals who are neither disabled nor have dependent children and who become survivors before age 45;
- Introduce child-rearing and disability drop-in provisions in the additional CPP;
- Provide a post-retirement disability benefit to early retirees (before age 65) who are deemed to be disabled and provide children’s benefits for children of disabled retirees in the base CPP;
- Make the death benefit a flat $2,500 for all eligible deceased contributors in the base CPP;
- Maintain portability of benefits between the Canada Pension Plan and the Québec Pension Plan; and
- Make technical amendments to the enabling provisions for the forthcoming regulations to preserve the financial sustainability of the additional CPP.