By legislation, every three years, the federal and provincial ministers of finance shall review the state of the Canada Pension Plan (CPP) and may make recommendations as to whether benefits or contributions rates or both should be changed.
The factors to be considered are:
- the most recent statutory actuarial report prepared by the Chief Actuary tabled in Parliament;
- any more recent estimates of the Chief Actuary;
- to maintain a relatively stable ratio of assets to expenditures over a long time horizon by determining a relatively stable contribution rate (steady-state rate); and
- changes that increase benefits or add new benefits must be fully funded.
By legislation, the statutory actuarial report must contain the minimum contribution rate to maintain a relatively stable ratio of assets to expenditures and a projection over 75 years of:
- contributions;
- contributory earnings;
- expenditures;
- investment earnings; and
- assets.
Award Region
Award Year
2010
Country
Guideline
Guideline book
Region
Main country
Main region