How is the Canada Pension Plan financed?
The CPP is a “contributory” plan. This means that all its costs are covered by the financial contributions paid by employees, employers and self-employed workers, and from revenue earned on CPP investments. The CPP is not funded through general tax revenues. CPP funds are invested by the CPP Investment Board, an autonomous body whose mandate is to achieve a maximum rate of return on investment without undue risk. Operating independently of the federal and provincial governments, the Board’s qualified professionals invest CPP funds in financial markets, broadly following the same investment rules as other pension plans. The Board is overseen by a board of directors. The Board is accountable to the public and regularly reports its investment results. Visit www.cppib.ca for details.
