The Government will consult with provinces on permitting qualified persons who are not resident in Canada to serve on the board of directors of the Canada Pension Plan Investment Board.
The Canada Pension Plan Investment Board (CPPIB) has become one of the largest pension funds in the world, with total assets of $172.6 billion as at December 31, 2012. In prudently managing these funds for the benefit of current and future plan members, the CPPIB invests a significant proportionof its assets outside of Canada. Currently, only Canadian residents can serve on the CPPIB’s 12-person board of directors. At this stage of its evolution, the CPPIB’s board of directors might benefit from having access to the international talent pool. The Government will therefore consult provinces on permitting a limited number of qualified persons who are not resident in Canada to serve on the board of directors of the CPPIB, and if there is sufficient support, introduce the necessary changes to the Canada Pension Plan Investment Board Act.
The Government is committed to ensuring the proper management and ongoing sustainability of the Canada Pension Plan. The Government proposes to make the necessary amendments to ensure that the Canada Revenue Agency can accurately identify, calculate and reimburse overpayments made to the Quebec Pension Plan (QPP) in a given year by QPP contributors living outside of Quebec.
About the Initiative
Economic Action Plan 2012 announced the completion of the 2010–2012 triennial review of the Canada Pension Plan (CPP) by federal, provincial and territorial Ministers of Finance. In accordance with the legislation governing the CPP, Finance ministers review the financial state of the CPP every three years and make recommendations as to whether benefits or the contribution rate or both should be changed.
Progress to Date
Economic Action Plan 2012 announced that the 2010–2012 triennial review of the CPP confirms the financial sustainability of the Plan for at least the next 75 years at the current contribution rate of 9.9% of pensionable earnings. Thus, there will be no change to the contribution rate.
Finance Ministers also agreed to a number of technical amendments to the CPP legislation. The proposed CPP amendments range from consequential changes to the reforms that were made to modernize the CPP in the previous 2007–2009 triennial review to amendments that will ensure consistency within the different parts of the CPP legislation. The technical amendments will not change the level of CPP benefits or have an impact on the contribution rate.