Expanded CPP gains broad acceptance from employers: Survey

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Dec 09, 2013

Having employers, employees contribute 2 per cent of annual pay also popular option 

Canadian HR Reporter - An expanded Canada/Quebec Pension Plan (C/QPP) is considered to be the best way to improve Canada's retirement income system, according to Morneau Shepell's 60-Second Survey.

When asked to identify the most cost-effective way to improve Canada's retirement income system, 32 per cent of respondents opted for an expansion of the C/QPP. This would affect future service only and involve an increase in both the benefit rate (to 35 per cent) and the earnings ceiling (to $76,000).

The second most popular response, at 25 per cent, was to do nothing other than launch a campaign to encourage Canadians to save more, found the survey of 200 employers across Canada.

The other possibilities were to require every employer and employee to contribute two per cent of annual pay, up to $76,000, to a supplementary C/QPP DC arrangement (selected by 23 per cent) and to auto-enroll everyone in a pooled registered pension plan (PRPP) without employers being required to contribute and to allow individuals to opt out (20 per cent).

Read the full article: Expanded CPP gains broad acceptance from employers: Survey