If the latest actuarial report indicates a minimum contribution rate that is higher than the current legislated contribution rate and the federal and provincial finance ministers, after their financial review, do not make a recommendation, then Canada Pension Plan (CPP) selfsustaining default provisions apply.

Default provisions: If the legislated contribution rate is lower than the minimum contribution rate and if finance ministers do not make a recommendation, then default provisions apply:

•     contribution rate increases over three years subject to a maximum increase of 0.2 per cent per year as described by legislation;
•     benefits may be frozen until next review (3 years); and
•     at end of three years, next review performed to determine financial status of Plan.