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His Excellency the Governor General recommends to the House of
Commons the appropriation of public revenue under the circumstances,
in the manner and for the purposes set out in a measure entitled ``An Act
to establish the Canada Pension Plan Investment Board and to amend
the Canada Pension Plan and the Old Age Security Act and to make
consequential amendments to other Acts''.
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This enactment establishes the Canada Pension Plan Investment
Board and provides that the Board's objects are to manage and invest
money transferred to it from the Canada Pension Plan Account in the
best interests of the contributors and beneficiaries under the Canada
Pension Plan. The Board's investments are to be made in accordance
with the regulations and with investment policies, standards and
procedures the Board is required to establish.
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The enactment also amends the contribution, benefit and funding
provisions of the Canada Pension Plan. The funding provisions are
amended to move from ``pay-as-you-go'' funding to fuller funding. The
contribution rates are amended to reach 9.9% of contributory earnings
over six years and then remain steady. It also establishes that the Year's
Basic Exemption below which no contributions are paid is frozen at
$3,500.
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The benefit changes to the Canada Pension Plan that are included
in this enactment affect the contributory requirements for a disability
pension, the retirement benefit calculation of a former disability
recipient, the formula for adjusting career average earnings, the
maximum death benefit and the calculation of combined benefits.
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Other changes include provisions dealing with harmonization of the
Canada Pension Plan's disability benefits and provincial workers'
compensation benefits, post-mortem applications, non-cancellation of
retirement benefits in favour of disability benefits, reimbursement to
provinces, municipalities and private insurers, and the discontinuation
of the Canada Pension Plan Advisory Board. The Canada Pension Plan
and the Old Age Security Act are also amended in respect of information
sharing, investigations and penalties.
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The enactment also amends Part I of the Canada Pension Plan to
align it with the provisions of the Income Tax Act and the Employment
Insurance Act.
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