A tale of two pension plans

In particular, the CPP and the QPP have always had precisely the same contribution rate and levied contributions on the same band of earnings.1 From the perspective of economic policy, maintaining the same contribution rate and earnings ceiling ensures that the cost to employers and employees, in terms of the The Caledon Institute of Social Policy. [...] The most recent actuarial valuations of the Canada and the Quebec Pension Plans indicate that it will not be a straightforward matter to keep the contribution rates of the two plans the same, as has been the case for the last 42 years. [...] The purpose of this paper is to examine the reasons for the divergence in the financial projections of the Canada and the Quebec Pension Plans and to propose ways in which the parallelism of the two schemes, which has been a mainstay of federal and provincial policy for over four decades, can be maintained. [...] From the perspective of the financing of the CPP and the QPP, there were several key aspect of the consensus that have been central to the design and the operation of the two plans. [...] The Caledon Institute of Social Policy percent In light of the fact that the CPP’s and the QPP’s reserves now have access to the same investment markets, the difference in the assumed real-rates of return of the two plans is striking.