The current partial-funding model of the Canada Pension Plan is robust and appropriate for the purpose of contributing to the long-term financial sustainability of the plan, says an actuarial study published by the Office of the Chief Actuary of Canada.
“The current financing methodology helps to ensure that the CPP is affordable and sustainable for current and future generations of Canadians,” says chief actuary Jean-Claude Menard.
The study was undertaken on the recommendation of the CPP independent peer review panel, which recommended that the current financing methodology be reviewed periodically to confirm that it remains optimal.
Funding schemes used to attain the goal of financial sustainability of retirement funds in several countries were compared to the CPP.
The study concludes that the steady-state funding of the CPP is the optimal form of funding and that the objective of pre-funding the plan should remain paramount.
To read the study, click here.
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