Canada Pension Plan (CPP)
The CPP is a joint federal-provincial plan that began in January 1966 and operates throughout Canada except in Quebec, which has a sister plan, the Quebec Pension Plan (QPP). As the second tier of Canada's retirement income system, the CPP provides a retirement pension, disability benefits, benefits for survivors, children's benefits and a death benefit. In 2005-2006, 4 million people received benefits totalling $25 billion.
The CPP is reviewed every three years by federal, provincial, and territorial Finance ministers. The latest review in June 2006 confirmed that the CPP is on sound financial footing and that the current contribution rate of 9.9% will be sufficient to sustain it into the foreseeable future. Changes to benefit levels, contribution rates, CPP financing and investment policy require formal approval by Parliament, and two-thirds of the provinces with two-thirds of the population.
The CPP is a joint federal-provincial plan that began in January 1966 and operates throughout Canada except in Quebec, which has a sister plan, the Quebec Pension Plan (QPP). As the second tier of Canada's retirement income system, the CPP provides a retirement pension, disability benefits, benefits for survivors, children's benefits and a death benefit. In 2005-2006, 4 million people received benefits totalling $25 billion.
The CPP is reviewed every three years by federal, provincial, and territorial Finance ministers. The latest review in June 2006 confirmed that the CPP is on sound financial footing and that the current contribution rate of 9.9% will be sufficient to sustain it into the foreseeable future. Changes to benefit levels, contribution rates, CPP financing and investment policy require formal approval by Parliament, and two-thirds of the provinces with two-thirds of the population.