Yesterday the federal government tabled Bill C-26, which will implement changes to the Canada Pension Plan that were announced in June, 2016. All provinces other than Quebec are now on board, in support of increased employer and employee contributions, and higher benefits. The higher contribution rates will not apply until January 1, 2019. They will be phased in gradually over seven years (from 2019 to 2025).
Commentators refer to these changes as “historic”. It has been decades since significant changes were made to the CPP. The reality is that the Canadians who should be happiest about these changes are teenagers, since it will be many years until significantly higher benefits are paid from the CPP.
We will be providing more details about the CPP changes in the coming weeks.