NDP leadership hopeful Thomas Mulcair kicked off his campaign with a promise to improve retirement security for Canadians.
Mulcair’s proposed plan combines reforms to both the public and private pension systems, including a doubling of the maximum benefit under the Canada Pension Plan (CPP) and an increase to the Guaranteed Income Supplement. The NDP has proposed these reforms in the past, but Mulcair’s proposal also includes a new piece: the adoption of a pension exchange called “CPP+/QPP+.”
The proposed pension exchange would be operated by the CPP and consist of a payroll deduction system, a selection of investment funds—including a public plan offered by the CPP Investment Board—and regulatory requirements to both guarantee and insure benefits.
“Canadians who choose to participate will be able to have their pension contributions deducted directly from their paycheque and invested through the exchange in one of several investment funds,” said Mulcair. “This will force large financial institutions to compete for our investment dollars and guarantee both lower management fees and higher rates of return.”