Deal on Pension Plan reform came quickly

OTTAWA — Higher Canada Pension Plan premiums are still more than two years off, and the ensuing benefits — meant to accrue to future generations — still several decades away.

All of which makes it rather ironic that the “historic” CPP deal reached Monday between Ottawa and most, but not all, of the provinces and territories came together in a relative blink of an eye — by policy-making standards, at least.

Even federal Finance Minister Bill Morneau, himself a pension expert, had expected it to take until the end of the year for negotiations to wrap up. Instead, the provinces are now being asked to finalize an agreement by July 15 that will eventually increase contributions and retirement benefits through the public plan.

Following weeks of talks and an all-day meeting in Vancouver on Monday, finance ministers emerged with an agreement in principle. Even provinces such as Saskatchewan and British Columbia, which had expressed concerns about the timing of CPP reform, had signed on. Only Manitoba and Quebec declined to agree to the terms.

The agreement came together as pollsters pointed to overwhelming popular support for public pension reform amid concerns about the adequacy of retirement savings.

The federal Liberals ran on a platform to upgrade the public pension system, as did their Ontario cousins. The result also means Ontario will abandon its project to go it alone with its own pension plan.

How did this all happen so quickly?

Sources familiar with the talks said doubters had concerns about the potential economic impact of boosting the CPP, even at the late stages of negotiations.

They said Ottawa made a major push in the final days and hours, which helped secure enough country-wide support to expand the CPP. To make the change, they needed the consent of a minimum of seven provinces representing at least two-thirds of Canada’s population.

The sources also said Prime Minister Justin Trudeau himself was personally involved in the 11thhour effort. Ontario was also a central player in the lobbying drive.