Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone
CPP expansion was a federal Liberal election promise, but at a pre-Christmas meeting with his provincial counterparts finance minister Bill Morneau only found a chill gust of wind blowing the other way.
Since changes to the CPP require the support of Ottawa plus seven of the 10 provinces representing two-thirds of the population, the hurdle to change is significant. There are many different ways the plan could be expanded, but don’t get your hopes up; a deal is still in the distance, if it comes at all.
If CPP is expanded, how much more will I get?
It all depends on how the government goes about it. The simplest way would be to increase the average industrial wage, which is pegged for CPP purposes at $ 54,900 in 2016. You’ll find that number on the T4 slip you get from your employer at tax time.
Another possibility is an optional add-on pension scheme.
When would I get more money?
Not for a while. If an agreement is reached this month, you’d have to wait for three more years before any changes came into effect. That’s the required cooling-off period between making CPP changes and implementing them.
Why is the CPP payment so small?
The maximum monthly amount in 2016 for someone retiring at age 65 is $ 1,092.50. That amount drops for every month you start receiving it before age 65, so someone starting at age 60 gets 36 per cent less as a maximum than a 65-year-old.
Do many people get the maximum?
No, fewer than 10 per cent of Canadians typically get it. The average is about half of the maximum, according to Human Resources Development Canada, which administers the plan payments. Women tend to have a lower average than men.
Is an increase likely?
It’s a distinct possibility. The CPPIB has $ 279 billion in assets and for a decade it has been consistently making more than it needs to meet its obligations. Its average annual return after inflation over 10 years is 5.1 per cent. The chief actuary of Canada says it needed to make 4.1 per cent a year to meet its obligations.
Who knows. Maybe this time will be different.
More columns by Adam Mayers