Boosting CPP requires unanimity, Flaherty says
OTTAWA – Finance Minister Jim Flaherty says now is not the time to enrich the Canada Pension Plan and that he wants consensus from all provinces before boosting it, but many of his provincial counterparts are urging him to modestly increase CPP even if there’s no unanimity.
Increasing CPP contributions for Canadians, renewing the federal equalization program, skills training and the possibility of a national securities regulator are some of the main issues on the agenda when Flaherty meets provincial and territorial finance ministers Sunday and Monday in and around Ottawa.
Flaherty is expected to deliver a presentation or make an announcement on possible equalization changes, albeit potentially minor tinkering, according to at least one finance minister.
A number of provinces are urging the federal government to modestly and gradually increase CPP contributions in the coming years to help Canadians better save for retirement. An enriched CPP would complement the new Pooled Registered Pension Plans — a private-sector pension option to boost retirement savings — that is endorsed by the Harper government.
Flaherty said Friday the federal government is concerned about increasing CPP contributions now because it would slap an additional burden on employers during fragile economic times, threatening their ability to hire workers.
The federal government can’t unilaterally change the CPP; amending it requires the backing of two-thirds of the provinces representing two-thirds of the population.
“I would not want to move ahead … without everyone being on board,” Flaherty said. “It’s quite important in the federation that if we’re going to do something fundamental with respect to the Canada Pension Plan we really try to do it altogether.”