CPP reform to sting economy, jobs over short term, but help beyond 2025: feds
OTTAWA — The federal government is expecting Canada Pension Plan reform to slow economic and employment growth slightly in the short term before boosting both in the long run.
The Finance Department released new projections Monday showing what Canadians can expect if Ottawa moves ahead with the tentative CPP agreement it reached with most provinces.
The changes would gradually increase mandatory contributions to the public plan as a way to boost the program’s benefits for future generations of retirees.
The Liberal government has been trying to sell the CPP proposal amid concerns about its impact on the already weak economy. For reform to proceed, however, Ottawa still needs a signature from either British Columbia or Quebec.