Manitoba joins other provinces in efforts to reform Canada Pension Plan: Morneau

OTTAWA – Finance Minister Bill Morneau says Manitoba has joined the other provinces and agreed to help strengthen the Canada Pension Plan.

The agreement in principle now includes every province except for Quebec.

Quebec has agreed to remain part of the discussions in recognition of the unique nature of the Quebec Pension Plan.

All have agreed to work towards confirming the approval of their respective governments by July 15.

The preliminary agreement reached by the country’s finance ministers on June 20 states that the CPP premium increases on workers and employers will start to be phased in over several years beginning on Jan. 1, 2019.

An average Canadian worker earning about $55,000 would pay an additional $7 a month in 2019, and that would increase to $34 a month by 2023.

If fully implemented, the maximum annual benefits will increase by about one third to $17,478.

When the finance ministers reached the agreement last month, Manitoba’s newly-elected government said it wanted to give the matter careful consideration.

“I am pleased to welcome Manitoba to this historic agreement-in-principle, which now includes all CPP-participating provinces,” Morneau said Thursday in a statement.

On Wednesday, the Canadian Federation of Independent Business called on Ottawa and the provinces to delay final agreement on changes to the CPP. The national association said it wants the governments to consult with Canadians and conduct a full economic impact analysis of the agreement in principle.