Uglier truths about the CPP
Source: National Post
Author: Jamie Golombek
Misperceptions plague t he public’s view of the Canada Pension Plan. Mark Machin, CEO of the Canada Pension Plan Investment Board ( CPPIB) — the organization tasked with investing Canada Pension Plan contributions — recently hit t he road in a cross- country effort to clear up the confusion. Unfortunately, Machin’s lack of clarity on key issues may have muddied the waters even more, giving the impression the Canada Pension Plan ( CPP) is a much better deal for Canadians than it actually is.
Machin told Canadians that the CPP is financially sustainable. But this wasn’t always the case. The CPP was overhauled in 1997; reforms included the creation of the CPPIB to i nvest pension contributions. That money, taken from working Canadians, is well in excess of the benefits paid to retirees in a given year.