Regulatory Initiative: Additional Canada Pension Plan Regulations - Forward Regulatory Plan 2018-2020
Title or working title of the regulatory initiative:
Additional Canada Pension Plan Regulations
Description of the objective:
An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act (Bill C-26), which came into force on March 3, 2017 and made significant enhancements to the Canada Pension Plan (CPP), referenced three issues related to Plan sustainability that must be addressed in regulations:
- the methodology for the actuarial calculation of minimum contribution rates for the CPP Enhancement;
- the acceptable range of these minimum contribution rates vis-à-vis the legislative rates over which the Plan would be considered to be in a sustainable position over the long-run; and,
- the automatic adjustments that would change benefits and/or contribution rates to bring the Plan back to a sustainable position, in the event that minimum contribution rates fall outside their sustainable range and Finance Ministers cannot reach a consensus on Plan changes.
These regulations will aim to ensure that the Plan is appropriately funded and that intergenerational equity is maintained, consistent with the full-funding principle underpinning the CPP Enhancement. The methodology for the calculation of the minimum contribution rates is referenced in paragraphs 115(1.1)(d) and (e) of the Canada Pension Plan. The ranges for the minimum contribution rates and the automatic adjustments are referenced in subsections 113.1(11.141) to (11.143) of the Canada Pension Plan.
Indication of business impacts:
To be determined.
Public consultation opportunities:
Canadians will be consulted through pre-publication in the Canada Gazette, Part I.
Consultations and Communications Branch
Department of Finance Canada
90 Elgin Street
Ottawa, Ontario K1A 0G5
For more information
- Government-Wide Forward Regulatory Plans
- The Cabinet Directive on Regulatory Management
- The Red Tape Reduction Action Plan
- The Canada-United States Regulatory Cooperation Council