FOR IMMEDIATE RELEASE
February 13, 2009
TORONTO, ON: Applauding the news that the CPP outperformed other broad based pension funds amid fears of pension fund failures, CARP reiterates its call for a Universal Pension Plan modeled on the CPP in its essential aspects, namely, mandatory enrolment, a payroll deduction mechanism, professional management, a mandate that is focused entirely on performance and independence from government or a single employer.
The Canada Pension Plan Investment Board released its third quarter performance report today showing decline for the quarter ending December 2008 of 6.7 per cent which is stellar compared to the sharp declines as high as 23% in public equity markets and the performance of major Canadian pension funds.
On the basis of the information provided, the CPP Fund appears to have experienced a loss of about 7.2% of its assets during the last quarter of 2008 due to the economic crisis. This favourably compares to the 15% to 20% loss sustained by most private plans.
As David Denison, President and CEO, CPP Investment Board noted, the CCPIB is “not forced to sell assets in these market conditions to pay current benefits” which is a genuine advantage that few, if any, other private plans have. CPP cash flows are projected to be positive for about another 10 years.
“The model of the CPP recommends itself certainly given its recent performance in the face of bad news all around. CARP is calling on the federal and provincial governments to establish a Universal Pension Plan modeled on the CPP for the one in three Canadians without any retirement savings”, said Susan Eng, Vice President, Advocacy of CARP.
Three provincial pension review panels [BC-Alberta, Nova Scotia and Ontario] identified the need to provide broader access to larger well managed pension funds for working Canadians who do not have access to workplace sponsored plans. The Ontario panel called for a Pension Summit to initiate long overdue pension reform and CARP has recommended that knowledgeable representatives of those most affected – plan members, retirees and pre-retirees – have a seat at the table.
CARP is a national, non-partisan, non-profit organization committed to advocating for a New Vision of Aging for Canada, social change that will bring financial security, equitable access to health care and freedom from discrimination. CARP seeks to ensure that the marketplace serves the needs and expectations of our generation and provides value-added benefits, products and services to our members. Through our network of chapters across Canada, CARP is dedicated to building a sense of community and shared values among our members in support of CARP’s mission.
For further information, please contact:
Pam Maher 416.363.2277 x. 235 Communications coordinator
Anne Gravel 416.363.2277 x. 230 Researcher, Policy Development
Susan Eng Vice President Advocacy CARP, A New Vision of Aging for Canada
or visit our website: www.carp.ca, For more financial highlights visit the CPP Investment Board website at http://www.cppib.ca/