Flaherty looks to private sector for pension reform - MoneySense

Flaherty looks to private sector for pension reform

Expanded CPP looks to be off the table.


Federal Finance Minister Jim Flaherty looks to have shelved his plans for an expanded Canada Pension Plan (CPP) and is now looking to the provinces to help him establish a new private sector pension plan.

According to a letter sent to provincial finance ministers, Flaherty is seeking to create Pooled Registered Pension Plans (PRPPs), which he describes as a major step forward for more retirement security—particularly for workers who are either self-employed or who currently have no private plan coverage.

Pension reform has been a slow-burn issue for the Conservative government, and the general consensus amongst most provinces and industry experts has been an expanded CPP alongside an increased role for the private sector—until today. There was no mention of the CPP in Flaherty’s letter, likely due to opposition to the idea from Alberta.