Province Supports Improving Canada's Retirement Income System

Nova Scotia supports concrete action to improve Canada's retirement income system, says Finance Minister Graham Steele.

"These include improvements to the Canada Pension Plan and private-sector pension innovation," said Mr. Steele, who is on his way to Kananaskis, Alta., for the national meeting of finance ministers on Sunday and Monday.

"At our last meeting, in June, the federal government and all provinces but one agreed in principle to seeking a modest, phased-in and fully funded improvement to the Canada Pension Plan. CPP, together with Old Age Security and the Guaranteed Income Supplement, has contributed greatly to ensuring Canadians can retire with dignity and with modest income security. We need to build on that success."

Mr. Steele also welcomed a proposal from the federal government for Pooled Registered Pension Plans (PRPPs), which was circulated to the provinces earlier this week. It is being studied by Nova Scotia.

"I'm pleased that the federal government is moving ahead on the side of private-sector pension innovation, which is something all provinces support," said Mr. Steele. "At the same time, it has never been suggested, before this week, that CPP improvements and private-sector innovation are alternatives to each other.

"Each is an important part of the response to issues of retirement-income adequacy."

Mr. Steele noted that the Canada Pension Plan has a decades-long track record of delivering retirement income to Canadians with very low administrative costs, and that the CPP is financially sound for at least the next 75 years.

"We need to build on the proven strengths of the CPP, while moving very carefully to ensure we get it right," said Mr. Steele. "We continue to support a modest, phased-in and fully funded improvement to the CPP, and that is the message I will be taking to Kananaskis."