Manitoba offers ideas for CPP reform after rejecting federal proposal

The Manitoba government, one of two provinces to reject the terms of the Canada Pension Plan reform, has released its proposed enhancements.

"Our proposals would make the CPP more responsive to the realities of the generation to come," said Premier Brian Pallister, adding the strong federal-provincial desire to amend the plan "gives us a unique opportunity to get this right."

'There are opportunities to make the CPP better, and we shouldn't miss that opportunity.'

8 years ago

Duration 2:44

The Manitoba government, one of two provinces to reject the terms of the Canada Pension Plan reform, has released its proposed enhancements.

"This is a once-in-our-lifetime chance to modernize the CPP, to make it more compassionate and more responsive to the changing needs of Canadians," said Manitoba Finance Minister Cameron Friesen.

The vast majority of Canada's finance ministers reached an agreement in principle last week to revamp the CPP. Only Manitoba and Quebec declined to agree to the terms.

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Under the agreement, set to go into effect in 2019, an average Canadian worker earning about $55,000 will pay an additional $7 a month in premiums in 2019. That would increase to $34 a month by 2023.

Once the plan is fully implemented, the maximum annual benefits will increase by about one-third to $17,478.

Manitoba offers ideas for CPP reform after rejecting federal proposal

8 years ago

Duration 2:06

The Manitoba government, one of two provinces to reject the terms of the Canada Pension Plan reform, has released its proposed enhancements.

Manitoba's wants its provincial and federal colleagues to consider:

• Low-income single seniors by eliminating the claw back of guaranteed income supplement payments for widowed seniors' CPP survivor benefits.
• Indexing of the death benefit to the rate of inflation. Currently the CPP death benefit provides a maximum one-time payment of $2,500 to the estate of a deceased CPP contributor. This maximum was set in 1997 and frozen.
• Extension of the time period from two years to four for higher income earners to ramp up CPP contributions.
• Committing to a comprehensive review of the other CPP benefits. While it is assumed all CPP benefits, including survivor and disability benefits, will be increased in proportion to the enhancements outlined in the proposed reforms, "this should be explicitly stated" in the agreement.

Friesen says CPP is only one part of retirement security and the plan must be more responsive to the needs of Canadians. He said he has spoken to a number of his counterparts in other provinces and there is support for Manitoba's ideas.

There will be a review coming up of CPP later this year and the Manitoba government would like some of its ideas to be part of those meetings.