The item below is a Provincial Governments News Release

Provinces Call for Enhanced CPP

December 19, 2010

Multi-pronged approach needed to solve savings challenge

Today the Provinces of Prince Edward Island, Nova Scotia, New Brunswick, Manitoba, British Columbia and Ontario called on the federal government to keep a modest CPP enhancement on the table as part of a package of reforms that would make saving for retirement easier, more affordable and more secure for Canadians.

The provinces would like to see measurable progress on the following reforms at the upcoming Finance Ministers’ Meeting in Kananaskis, Alberta:

* A modest, phased-in, fully-funded enhancement to Canada Pension Plan (CPP). Any CPP changes would have to be affordable for both employees and their employer.

* Pension innovation to provide more Canadians with access to low-cost pensions. A harmonized, pan-Canadian framework should be developed, focusing on simplicity and plan member protection.

The provinces expressed concern at recent statements by the federal government suggesting that a modest CPP enhancement was no longer being considered. The provinces have heard strong public support for such an enhancement as an integral part of the retirement income solution. Progress on CPP should not be deferred.

Keywords: CPP, pension reform