“This is yet another example of how much we can accomplish for our citizens when there is close collaboration between provinces, territories and the federal government on common goals,” said Trudeau.
“This stronger and more stable pension program will help middle class Canadians enjoy their retirement years as they should – enjoying their health and families – instead of worrying about making ends meet,” he added.
Yesterday, British Columbia became the ninth province to give approval, signalling the start of a nine-year process to revamp the CPP. Once legislation has been introduced, the changes will be phased in gradually starting from 2019 and with a planned completion date of 2025.
“We promised that we would provide hardworking Canadians across the country with a more secure and dignified retirement,” said Trudeau. “Today we kept that promise.”
The new CPP will increase the share of eligible annual earnings received during retirement from one quarter to one third. It will also increase by 14 per cent the maximum income range covered by the CPP.
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Legislation to enhance the current Canada Pension Plan will soon be introduced to parliament after Prime Minister Justin Trudeau confirmed all nine participating provinces have agreed to move forward.