CARP’s Role in the Creation, Enhancement, and Protection of the Canada Pension Plan (CPP)
The Canadian Association of Retired Persons (CARP) has long been an advocate for the financial security of older Canadians. CARP has made pivotal contributions to the creation of the Canada Pension Plan Investment Board (CPPIB). Our successful efforts to enhance the CPP, and our firm opposition to provincial attempts, like Alberta’s current proposal, to withdraw from the CPP have benefited millions of Canadian retirees. CARP firmly believes the CPP belongs to the pension holders and should remain a national plan, free from political interference.
CARP’s advocacy, from the leadership of founder Lillian Morgenthau to its recent nationwide campaigns under Board Chairman, Moses Znaimer, has ensured that the CPP is well-positioned to meet the evolving needs of Canadians.
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I. The Origins of CARP and the Call for Financial Security for Seniors
Founded by Lillian Morgenthau in 1984, CARP was created to advocate for the financial security of Canadian seniors. As pension reforms were debated throughout the 1990s, CARP was at the forefront of pushing for a sustainable pension system, free from political influence. The creation of the Canada Pension Plan Investment Board (CPPIB) in 1997, under then-Finance Minister Paul Martin, represented a landmark victory for the organization. Through years of advocacy, CARP helped ensure that the CPPIB would operate independently of government and focus solely on growing the pension assets of Canadians.
Morgenthau’s vision was to insulate the pension system from the whims of short-term political agendas. “A pension plan that serves the long-term needs of Canadians must be removed from the immediate interests of politics,” she famously remarked in a CARP meeting in 1995. Her leadership ensured CARP would continue advocating for the protection of seniors’ financial security even after her tenure.
II. The Creation of the CPPIB and CARP’s Continued Advocacy
When Finance Minister Paul Martin led the 1996 reforms, CARP was among the most vocal organizations calling for an independent board to manage CPP funds. The Canada Pension Plan Investment Board (CPPIB) was subsequently established in 1997 as a professional, independent organization responsible for managing the funds in the best interests of contributors and beneficiaries. Free from government control, the CPPIB has since grown into one of the largest and most respected pension funds globally, managing over $500 billion in assets as of 2024.
CARP’s role in advocating for this structure was instrumental. The organization consistently pushed for a governance model that ensured the CPPIB could focus on long-term returns without political interference. In a statement following the establishment of the CPPIB, Paul Martin acknowledged CARP’s role: “Groups like CARP were critical in ensuring that the CPP reforms were not just a temporary fix but a sustainable solution for all Canadians.”
III. CARP’s 2016 Campaign for CPP Enhancement
In 2016, CARP led a national campaign to enhance the CPP, recognizing that the original design, which replaced only 25% of average earnings, was insufficient for many retirees. CARP’s volunteer network mobilized across Canada, applying pressure on provincial finance ministers and premiers to support a gradual increase in both CPP contributions and benefits. CARP’s advocacy was especially significant in securing the support for PEI’s Finance Minister Wes Sheridan, who became a leading voice for CPP enhancement.
CARP’s campaign demonstrated the power of grassroots mobilization in influencing policy at the national level. By engaging volunteers, holding public forums, and lobbying political leaders, CARP helped ensure that the federal government and the provinces reached an agreement to enhance the CPP, ultimately improving financial security for future generations of retirees.
IV. The Threat to CPP: Alberta’s Proposed Referendum
Today, the CPP faces a new challenge with Alberta’s proposal to withdraw from the national plan and establish its own Alberta Pension Plan (APP). Alberta Premier Danielle Smith has positioned the APP as a way for the province to gain greater control over its pension assets, citing that Alberta contributes more to the CPP than it receives in benefits. However, this proposal has drawn widespread opposition, not just from CARP but from Canadians across the political spectrum.
CARP’s Opposition to Alberta’s Withdrawal from CPP
CARP strongly opposes Alberta’s attempt to leave the CPP, viewing it as a dangerous precedent that could weaken the national pension system. CARP believes that the CPP belongs to its contributors—working Canadians and retirees—and should remain a national plan managed by the CPPIB. Provincial governments, CARP argues, have no right to interfere with a system that has served Canadians well for over five decades.
CARP’s Bill VanGorder, in a recent public statement, emphasized: “The CPP is not a provincial bargaining chip. It is a national program that belongs to Canadians, and any attempt to dismantle it threatens the financial security of all pension holders.” The organization has consistently pointed out that fragmenting the CPP by allowing provinces to opt out would erode the economies of scale and risk-return profile that have made the CPPIB so successful.
National Opposition to Alberta’s Proposal
CARP’s stance against the APP is echoed by federal political parties across the spectrum. The Liberal government, under Prime Minister Justin Trudeau, has publicly opposed Alberta’s plan, arguing that the CPP provides stability for all Canadians and should remain a national asset. Similarly, leaders from the NDP and the Conservative Party have expressed concerns over the risks posed by Alberta’s withdrawal. Federal Finance Minister Chrystia Freeland has warned that creating a provincial pension plan would be economically destabilizing for both Alberta and the rest of the country.
A recent report by the CD Howe Institute further supported CARP’s position, concluding that Alberta’s claim of over-contributing to the CPP is based on selective data and that withdrawing from the CPP could ultimately leave Alberta’s retirees worse off due to lower investment returns and higher administrative costs.
Wes Sheridan’s Support for CPP Enhancement
In discussions surrounding the potential exit of Alberta from the CPP, the contribution of PEI’s Finance Minister Wes Sheridan remains a crucial example of the importance of a united, national pension plan. During the 2016 campaign for CPP enhancement, Sheridan was a vocal proponent of expanding the CPP to address the long-term financial needs of Canadians. He warned that without significant enhancements, the CPP would fall short of providing adequate retirement income for future generations. His support of CPP expansion, alongside CARP’s advocacy, played a key role in the eventual decision to enhance the plan.
Sheridan has publicly expressed concerns over Alberta’s proposed referendum, stating: “The success of the CPP lies in its collective power. To fragment it now, when the plan has proven resilient and effective, would be a disservice to all Canadians, not just those in Alberta.”
V. CARP’s Commitment to Protecting the CPP
As a national advocacy organization representing the interests of older Canadians, CARP will continue to oppose any attempts to weaken the CPP. Whether it’s a provincial government’s proposal to exit the plan or efforts to politicize pension fund management, CARP remains steadfast in its commitment to protect the CPP for current and future generations.
CARP’s position is clear: the CPP must remain a national plan, independent of government control, and managed by the CPPIB with the sole purpose of ensuring long-term financial security for Canada’s retirees. As threats to the plan arise, CARP will leverage its network of volunteers, its history of successful advocacy, and its relationships with federal and provincial governments to safeguard the CPP from any provincial interference.
Conclusion: A Legacy of Advocacy and Ongoing Vigilance
CARP’s involvement in the creation, enhancement, and protection of the Canada Pension Plan is a testament to the organization’s unwavering commitment to the financial well-being of seniors. From Lillian Morgenthau’s early efforts to protect the pension system from political control to CARP’s national campaign for CPP enhancement in 2016, the organization has played an indispensable role in shaping one of Canada’s most important social programs.
Today, as Alberta threatens to leave the CPP, CARP stands ready to oppose any provincial efforts that undermine the integrity of the national pension plan. The CPP is not a tool for political maneuvering; it is a pillar of financial security for all Canadians. CARP will continue its advocacy to ensure the CPP remains strong, sustainable, and independent for generations to come.
Call to Action: Join CARP and Protect Your Financial Future
The Canada Pension Plan (CPP) is a pillar of financial security for seniors, but it’s under threat. CARP has been at the forefront of advocating for its protection and enhancement, ensuring it remains independent and serves all Canadians. Now more than ever, we need educated senior voters united in a common cause to hold governments accountable. By joining CARP, you become part of a powerful movement that defends the rights of retirees and ensures their voices are heard. Help us keep the CPP strong—join CARP today and make a difference! Together, we will hold the government’s feet to the fire and secure the financial well-being of all Canadians.
References:
- Canada Pension Plan Investment Board, Annual Report 2024.
- Paul Martin, Statement on the Creation of the CPPIB, 1997.
- Wes Sheridan, Interview in The Guardian (PEI), 2015.
- CARP’s Campaign for CPP Enhancement, 2016 Advocacy Report.
- CD Howe Institute, Report on Alberta’s Contribution to the CPP, 2023.
- Bill VanGorder, CARP CEO, Public Statement on Alberta’s Proposed APP, 2024.
- Chrystia Freeland, Statement on the National Importance of the CPP, 2023.
- Statistics Canada, Population Aging Projections, 2023.
