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Originally Posted by First Lady
Is there a more recent report? We've had a boom and bust since then.
I'm just a lay person when it comes to CPP, but all I've been hearing is "don't bank on that for your retirement".
I would really like to hear from the investment advisers we have here on CP. * looks at Slava *
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Sorry, yes, the Superintendent must report every three years. This is the most recent report from 2010:
http://www.osfi-bsif.gc.ca/app/DocRe...PP/cpp25_e.pdf
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The results contained in this report confirm that the legislated contribution rate of 9.9% is sufficient to pay future expenditures and to accumulate assets worth $275 billion (i.e. 4.7 times the annual expenditures) in 2020. The minimum contribution rate required to financially sustain the Plan under this report is 9.86% for years 2013 to 2022 and 9.85% for years 2023 and thereafter, compared to 9.82% as determined for the 23rd CPP Actuarial Report. Experience over the period 2007 to 2009 was worse than anticipated overall, thus putting upward pressure on the minimum contribution rate. Investment losses and higher life expectancy increased the rate. Fertility, migration, and economic experience were all higher than expected and thus partially offset the impact on the minimum contribution rate. However, lower inflation expectations, lower assumed rates of return on investments, and expected continuing decreases in mortality rates, especially at the older ages, result in an overall increase to the rate.
Under the 9.9% legislated contribution rate, the assets are projected to grow rapidly over the next 11 years as contribution revenue is expected to exceed expenditures over that period. Assets will continue to grow thereafter until the end of the projection period, but at a slower pace, with the ratio of assets to the following year’s expenditures expected to reach a level of 5.2 by 2050. Thus, despite the projected substantial increase in benefits paid as a result of an aging population, the Plan is expected to be able to meet its obligations throughout the projection period and to remain financially sustainable over the long term.
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Anyway, I'm a lowly lawyer, not an actuary, so by no means am I any more than a layman when it comes to this sort of thing. However, reading these two reports, it sounds to me like the imminent demise of the CPP is vastly overstated in some circles. I'd be curious to hear Ms. Smith's rationale for advocating Alberta's withdrawal from CPP. I hope that it is based on something more than just pandering to general anti-Ottawa sentiment among her party's base.