DCHP-3

Canada Pension Plan

DCHP-2 (Aug 2016)

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CPP

n. — Administration

a Canada-wide, mandatory pension contribution system for workers.

Type: 1. Origin — The CPP was legislated in 1965 and came into effect in 1966 as a mandatory program within Canada's general income scheme for retirees, which also includes direct government subsidies such as the Old Age Security and Guaranteed Income Supplement programs. Since the CPP is a mandatory program, contributions are deducted via payroll taxes and are directly related to an individual's employment. The mandatory nature of the CPP distinguishes it from pension plans of other countries, such as the UK. As a universal public retirement income plan, the CPP covers all eligible Canadians, wherever they may live.
Quebec was the only province to reject the federal scheme, and as a result the Quebec Pension Plan was created in 1965. The QPP is similar in most respects to the CPP.
See also Maple Leaf Web and Canadian Encyclopedia references.

Quotations

1963
[...] the Prime Minister continued. "The Canada pension plan which Parliament will soon be considering will complement any efforts of this nature to ensure portability and solvency of private pension plans."
1966
Collections for the Canada Pension Plan began Jan. 1. All funds received, but not required for expenses and benefit payments during the following three months, are made available for the purchase of special non-marketable provincial or federal bonds with terms up to 20 years. Interest rates will match the current rates on marketable federal bonds.
1978
Canada's old-age programs - which include old-age security payments, guaranteed income supplements for those who qualify, spouse's allowances, veterans' pensions and allowances and the Canada Pension Plan - are all federal.
1986
In the Canada Pension Plan (CPP) reform package agreed to in December and due to be tabled in the House of Commons as legislation this month, the 11 governments agreed to the long-standing demand of women's groups that the splitting of pension credits be made automatic on divorce.
1989
The Pearson government legislated the Canada Pension Plan and universal medicare.
2008
Suppose, for example, that your only other income besides OAS, is from Canada Pension Plan (CPP) retirement benefits. If your wage level had been below the average industrial wage, you may be entitled to, say, $500 per month from CPP.
2015
The Liberal election platform talked about working with the provinces and other stakeholders to "enhance" the Canada Pension plan, and prior to the campaign Mr. Trudeau had mused about mandatory increases to CPP contributions to fund higher benefits in the future.

References