Provincial finance ministers at odds over possible CPP reform
MEECH LAKE, Quebec — A growing number of provinces are calling for an enrichment of the Canada Pension Plan, but it appears doubtful the country’s finance ministers will find consensus to proceed with CPP reforms.
Boosting CPP, federal transfers to the provinces, the possibility of a national securities regulator and skills training are some of the major themes on the agenda for the federal, provincial and territorial finance ministers.
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.
The federal government and a handful of provinces are worried that increasing CPP contributions at the current time would slap an additional financial burden on employers during a fragile economy and threaten their ability to hire workers.
Federal Finance Minister Jim Flaherty says he wants consensus from all provinces before boosting CPP contributions, even though the support of only two-thirds of the provinces representing two-thirds of the population is actually needed to proceed. But provinces like Ontario believe there’s enough support for CPP reforms and that the federal government should introduce legislation to boost contributions to help Canadians save for their retirement.
“I think it would be a mistake for a federal government to (stop it),” Ontario Finance Minister Dwight Duncan told reporters.
“If it’s the will of the provinces, based on the equations that are all agreed to in the act, I think that would be a mistake. I think it would be a mistake to essentially give every province a veto on any important matter — that’s effectively what you’re saying here.”