Provinces Lobby Ottawa To Halt Canada Pension Plan Increase

Canada’s provinces are lobbying the federal government in Ottawa to halt a planned increase in the premiums that workers and businesses pay into the Canada Pension Plan (CPP).

Provincial finance ministers have been pressuring federal Finance Minister Chrystia Freeland to pause the planned CPP increase that is scheduled to go into effect on January 1, 2021. The CPP increase is part of a multi-year plan to boost retirement benefits through the public pension.

The first premium increase occurred in 2019, another was earlier this year and a third increase is scheduled for the start of 2021. A number of provincial finance ministers on a recent call with Freeland asked her to stop next year's automatic increase because of the Covid-19 pandemic.

They argued it isn't a wise economic decision to take more off workers' paycheques and to charge businesses more when many are still struggling because of the virus. Additionally, Saskatchewan's finance minister sent Freeland a letter asking her to freeze CPP increases for the foreseeable future.