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Will C-36 Undermine CPP “9.9”? Benefit Enhancement and the Sustainability of the Canada Pension Plan

Author

Listed:
  • William B.P. Robson

    (C.D. Howe Institute)

Abstract

The Canada Pension Plan, like all pension plans and social-security programs, is under constant tension. On one side are current and hopeful beneficiaries, who typically want richer payouts. On the other are younger actual or potential contributors, who typically want lower or at least sustainable contribution rates. The CPP’s history reflects this tension: the repeated benefit enrichment, rising costs and growing unfunded liabilities that marked the 1970s and 1980s preceded reforms in the 1990s that trimmed benefits, ramped up contributions, and aimed to pre-fund enough of the program to hold its contribution rate at 9.9 percent.

Suggested Citation

  • William B.P. Robson, 2007. "Will C-36 Undermine CPP “9.9”? Benefit Enhancement and the Sustainability of the Canada Pension Plan," e-briefs 41, C.D. Howe Institute.
    • Handle: RePEc:cdh:ebrief:41
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    File URL: https://www.cdhowe.org/will-c-36-undermine-cpp-%E2%80%9C99%E2%80%9D-benefit-enhancement-and-sustainability-canada-pension-plan
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    More about this item

    Keywords

    governance and public institutions; pension funding;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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