Southern Alberta Council on Public Affairs (SACPA)

As Demographics change, will Canada’s Pension Plan (CPP) be Sustainable? with Jeffrey Hodgson

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Synopsis

The CPP came into effect on January 1, 1966 and applied to all provinces and territories except Quebec, where the separate but similar QPP was established in the same year. The contribution rates for QPP are higher than those for CPP. Although the year’s maximum pensionable earnings ($61,600 for 2021) and annual basic exemption ($3,500) for both plans are the same, an employee paying into the QPP will pay contributions at a higher rate (5.90% for 2021) compared to the rate for an employee who pays into the CPP (5.45% for 2021).   In terms of value, CPP Investments holds a very diverse $550.4 billion global investment portfolio. Its most recent results showed it produced a 10-year annualized net return of 11.6%. The speaker will elaborate on its sustainability and discuss elements including its use of green bonds and approach to investing in opportunities related to the energy industry’s evolution.   Speaker: Jeffrey Hodgson   Jeffrey Hodgson joined CPP Investments in July 2017. He oversees the Global Stakehol