Finance Minister Rosann Wowchuk has vowed to make enhancements to the Canada Pension Plan (CPP) a priority at the meeting of federal, provincial and territorial finance ministers this weekend in Kananaskis, Alta.
“Manitoba’s position is to move forward for a modest, phased-in and fully funded expansion of the existing CPP as the foundation for strengthening the retirement income system in Canada,” said Wowchuk.
The minister added there are many advantages to building on the strengths of the existing CPP which she said is a very important component of a strong retirement income system for Manitobans and Canadians.
Finance ministers met this past June and agreed to work together to consider a balanced package of targeted measures to strengthen Canada’s retirement income system. These improvements would build on the many strengths of the current system and would consist of a healthy balance between government and private-sector involvement with both mandatory and voluntary savings elements, as well as a financial literacy component.
Wowchuk welcomed the release of the proposal on Pooled Registered Pension Plans by Federal Finance Minister Jim Flaherty yesterday.
“Manitoba is ahead of the curve on pension innovations,” said Wowchuk. “The province’s Pension Benefits Act already allows flexibility in pension design and delivery. Changes proposed by the federal government yesterday will allow an even wider range of savers to participate in pension savings. Working together on innovative changes is one important part of our strategy to improve pensions in Canada. I look forward to engaging with my counterparts on this and on enhancements to our current CPP system as well.”
An expansion of the CPP, in particular, would increase savings adequacy in the future by building on the plan’s existing strengths, the minister said. CPP’s guaranteed benefits are secure, inflation-indexed and portable. Wowchuk added that this approach is the most practical approach to address concerns surrounding retirement income.
Manitoba will also continue to work with the federal government and other provinces to encourage greater financial literacy in order to help Canadians plan for their future retirement, the minister said.
