Position Demonstrates Commitment to Social Programs, Families and Seniors

Provincial Government Reiterates Support for Enhancement of Canada Pension Plan

At a meeting of Provincial and Territorial Ministers of Finance in Toronto last week, Newfoundland and Labrador was one of a number of jurisdictions to reiterate its support for the enhancement of the Canada Pension Plan (CPP) as a means to strengthen the retirement income system. This is in response to concerns that a significant portion of middle-income Canadians are not saving adequately for retirement.

“Premiers have agreed on the need to consider specific options for enhancing the retirement income system in our country. Our Premier and government support the enhancement of the Canada Pension Plan provided such enhancement is modest, phased-in and fully funded. We believe such an enhancement will improve the retirement incomes of residents of our province and the country, and we are hopeful the federal government and provinces and territories will move in this direction.”
- The Honourable Tom Marshall, Minister of Finance and President of Treasury Board

Provincial and territorial finance ministers agreed on objectives that would underlie options to enhance the CPP. Ministers agree that any CPP enhancement should:

• Be responsible and fully funded and focus on today’s workers;
• Moderate the short-term effects on business, families and the economy;
• Improve the future retirement incomes of middle-income earners; and,
• Protect lower-income workers.

The Provincial Government supports the consideration of Pooled Registered Pension Plans (PRPPs) as one vehicle to enhance retirement income. However, Minister Marshall reiterated at the meeting that an enhanced CPP is the best option to address the retirement income shortfall and that the economy is strong enough to support the modest increase to CPP payments.

The Government of Newfoundland and Labrador is committed to supporting important social programs, strong communities and the health and well-being of children, families and seniors.

QUICK FACTS

• At the recent meeting of Provincial and Territorial Ministers of Finance, the Provincial Government reiterated its support for the enhancement of the CPP as a means to strengthen the retirement income system.
• To implement CPP enhancement requires the consent of seven provinces/territories totaling two-thirds of the population, plus the federal government.
• The CPP provides pension coverage to 18 million Canadians.
• As of March 31, 2013, the CPP fund was $183.3 million.

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Media contact:
Tansy Mundon
Director of Communications
Department of Finance
709-729-6830, 693-1865
tansymundon@gov.nl.ca 

2013 11 07                                     3:10 p.m.