An agreement in principle has been reached by Canada’s finance minsters in Vancouver to revamp Canada’s pension plan.
Under the agreement, contributions for a typical worker earning about $55,000 would initially increase by $7 a month, starting in 2019.
Employers would then match those contributions.
Speaking of the development, Federal finance minister Bill Morneau says “what we’re trying to do is improve the retirement outcomes of future generations.”
Ontario is on board, however, finance ministers from Quebec and Manitoba have not signed the agreement, but have agreed to be part of future discussions.
A change to the CPP needs both the consent of Ottawa and a minimum of seven provinces representing at least two-thirds of the country’s population.