Latest news with #CPP
CBC
5 hours ago
- Business
- CBC
How could Canada's pension fund invest more at home? Finance committee chair wants to know
Social Sharing Canada Pension Plan managers face the prospect of hearings by the House of Commons finance committee after MPs learned that only a small fraction of the public pension plan's billions of dollars of assets are invested in Canada. Liberal MP Karina Gould, the newly elected chair of the committee, said it is important for the CPP to be managed effectively but she would like to know why the fund that provides retirement benefits for most Canadians isn't investing more in the domestic economy. "It is concerning," Gould said Thursday. She said she wants to understand why so little is invested in Canada and how the public pension fund could not only "bolster the Canadian economy, but also support Canadians and their pensions." Gould said the committee will be busy holding pre-budget consultations and examining Bill C-4, which includes a tax cut for Canadians. However, if committee members agree, she said hearings into the Canada Pension Plan could take place in the fall. "In this economic moment that we're in, it's really important that we have an understanding of, you know, where our pension funds are investing," Gould said in an interview. "It's definitely something that could be of interest to the committee." Gould said committee hearings could also look at the CPP's mandate and whether it should more closely resemble the double mission of the Caisse de dépôt et placement du Québec — the province's public pension manager that is charged with both making money and investing in Quebec's economic development. "It's an interesting question to explore," she said. Gould's comments come after the Canada Pension Plan Investment Board (CPPIB), also known as CPP Investments, revealed that just 12 per cent of the CPP's assets are invested in Canada — its lowest level ever. The largest chunk of its $714-billion fund, 47 per cent, is currently invested in the United States — its highest level ever. The revelation has raised questions about whether the CPPIB should be investing more in Canada while the country is in the midst of a trade war with the U.S. Those who support the high level of investment in the United States by the CPP, including the CPPIB itself, argue the plan's mandate is to make money. They argue U.S. investments offer more diversity and higher returns — which help ensure the plan will be able to pay out benefits for years to come. Others, however, question why the plan isn't doing more to invest in Canada to create Canadian jobs and infrastructure projects. They are also concerned about the plan's exposure to the U.S. at a time when President Donald Trump's administration has made the country a riskier place to invest. Like Gould, the NDP's interim leader leader and finance critic Don Davies was surprised to learn that the CPP's investment in Canada had dropped to 12 per cent. "I think it's alarming. I mean I think it's only 12 per cent of, you know, such an incredibly large fund of monies that are paid by Canadian employees and Canadian employers," he said. While Davies says the fund is well managed, he wants the government to review the CPPIB's mandate. "I personally think [the mandate] should be expanded to also include development of the Canadian economy," he said. "There's no shortage of projects that will strengthen our economy and also give good returns to workers and employers," Davies said. "I think Canadians would be surprised to learn that their own pension monies are being used to invest in other countries in such a vastly disproportionate way than in their own country." Davies said he would welcome hearings on the issue by the finance committee, of which he is not a member.
Global News
12 hours ago
- Business
- Global News
United Conservative Party releases CPP survey results 21 months late
It's taken nearly two years for the province to release results from a survey that asked Albertans if they wanted an Alberta Pension Plan (APP). The survey showed 63 per cent of respondents were opposed to an APP, while only 10 per cent were in support. More recent polling from Leger in February found 55 per cent of Albertan's opposed an Alberta Pension Plan. A May 2025 poll from Janet Brown found 55 per cent of Albertans were in support of the APP if there were more details. In May, Alberta Premier Danielle Smith said, 'I am seeing the results you are, I am not seeing that there is an appetite to put it to the people at the moment.' Duane Bratt, a political science professor at Mount Royal University, says the Janet Brown poll, commissioned by the government of Alberta, has interesting results with the number of people waiting for more information. Story continues below advertisement He adds people wanted answers to questions. 'Like, what is the amount that Alberta Pension Plan would start with? What would be the contribution rates? What would be the benefit rates? What would be the mobility between provinces? All of those sorts of questions haven't been answered,' said Bratt. 1:56 Alberta finance minister says he has not 'flip-flopped' on proposed pension change Bratt says the survey was not fair because it asked questions that assumed the respondent wanted an Alberta Pension Plan. 'The question itself was, would you want to leave the CPP if you had the exact same program. In the absence of any details, how do you know that that's the exact same program,' said Bratt. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy He adds the survey results are no longer accurate but the delay of the release of the results shows a lack of transparency from the provincial government. 'The bigger story is how and why the government of Alberta refused to hand over public survey data that they encouraged Albertans to fill out. They went to extreme measures to block it, because they realized it was going to embarrass them. They believed that this was a neutral process to just explore the idea of leaving the Canadian pension plan, but it wasn't,' said Bratt. Story continues below advertisement The province says they will continue to talk with Albertans on this topic and says nothing will change unless Albertans approve a new pension plan in a referendum. Bratt says by itself, majority of Albertans are against the province pulling out of CPP and creating the APP. He adds that he expects to see several referendum questions about Alberta's independence. Those might include questions on the APP, an Alberta police force, and Alberta independence. 'I think what the government is hoping for is maybe people might not want to separate, but they still want to send a message to Ottawa,' said Bratt.
Business Wire
a day ago
- Politics
- Business Wire
UCP Needs to Listen to Albertans and Leave the Canada Pension Plan Alone: CUPE
EDMONTON, Alberta--(BUSINESS WIRE)--A survey of 93,000 Albertans conducted by the provincial government has a very clear message: don't touch the Canada Pension Plan (CPP). The results were released by the government after a lengthy request for information by the Edmonton Journal. CUPE Alberta President Raj Uppal says she was not surprised the survey showed 63% opposition to leaving the CPP, and only 10% support for an Alberta plan. 'There is no case for leaving the CPP,' said Uppal. 'An Alberta plan would cost more, and deliver weaker investment returns and smaller pensions.' Uppal called on the UCP government to abandon all plans to take Alberta out of the Canada Pension Plan. 'I know Danielle Smith likes to flirt with separatists, but the Canada Pension Plan is one of the strongest reasons for Alberta to remain in Canada. The Premier needs to abandon this idea and stop threatening the retirement security of Albertans.' :clc/cope 491
CBC
a day ago
- Business
- CBC
Nearly half of national public pension plan is invested in U.S. — and only 12% in Canada
Social Sharing As a former top Finance Department official, Susan Peterson played a key role years ago in creating the stable Canada Pension Plan that we see today. But even she was surprised by the numbers. A few weeks ago, the Canada Pension Plan Investment Board (CPPIB) revealed that 12 per cent of the CPP's assets are invested in Canada — its lowest level ever. The largest chunk of its $714-billion fund, 47 per cent, is currently invested in the United States — its highest level ever. Peterson doesn't think she's the only one surprised. "If Canadians knew out of the $714 billion such a miniscule amount was invested in Canada, I think they would say, whoa, what's wrong with this picture." The CPPIB is not alone. Experts say the Canada Pension Plan (CPP) is one of several Canadian pension plans that have been investing far more in the U.S. than in Canada in recent years. The CPP, whose investments are managed by the CPPIB, also known as CPP Investments, is a public pension plan that covers millions of Canadian workers across the country with the exception of Quebec, which has its own manager, the Caisse de dépôt et placement. Those who support this high level of U.S. investment, including the CPPIB itself, argue the plan's mandate is to make money. They argue U.S. investments offer more diversity and higher returns — which help ensure the plan will be able to pay out benefits for years to come. Others, however, question why the plan isn't doing more to invest in Canada to create Canadian jobs and infrastructure projects. They are also concerned about the plan's U.S. exposure at a time when President Donald Trump's administration has made the country a riskier place to invest. The Trump administration's "big, beautiful" tax reform bill also contains a section that risks hitting Canadian pension funds that have U.S. investments with a new withholding tax that experts predict could cost Canadians and Canadian companies billions if it is adopted. Some pension funds, like the Public Sector Pension Investment Board which has 41 per cent of its assets invested in the U.S., have said in recent days that they are reconsidering their U.S. exposure and are looking for more Canadian investment opportunities. Michel Leduc, head of public affairs and communications for the CPPIB, says it has to invest for the long term, regardless of individual governments or administrations. "We're investing money for people who aren't even born yet," he said. "That long-term thinking must be the strongest pillar of how we think about our investment strategy." But he says the CPPIB at the same time isn't "short-term stupid." "We're continuing to think through what could be some of the bigger impacts," he said. Leduc said the U.S. percentage has grown even though the fund has been diversifying away from the U.S. because the existing investments have grown in value. "U.S. stocks have gone up," he said. "It's just because we make good investments." Time to invest at home again? The CPPIB is also open to Canadian investment opportunities, Leduc said. Prime Minister Mark Carney has announced plans to invest and build in Canada. He has mentioned pension funds as one possible source of money. Finance Minister François-Philippe Champagne said the government plans to host pension funds interested in investing at home. "People see Canada as the place to invest," Champagne told CBC News. "So, we'll always be talking to them and investors from around the world." There was a time when the CPP primarily invested in Canada. Initially, it was operated as a pay-as-you-go model with investments in Canada, largely in government bonds. However, in the late 1990s the pension plan was facing a crisis — Canada's chief auditor predicted that it would run out of money by 2014 unless something was done. Spearheaded by then finance minister Paul Martin, and aided by officials like Peterson, the federal government and provinces agreed to a package of reforms, including the creation of the CPPIB. While the CPPIB is a Crown corporation, it operates independently from government. For years, a foreign property rule capped the amount pension funds could invest outside Canada. Introduced in 1971, it limited investments by pension funds to 10 per cent of their assets going abroad. That was raised to 20 per cent in the 1990s and then 30 per cent in 2001. In his 2005 budget, Finance Minister Ralph Goodale repealed that rule, saying the move had the potential to increase venture capital investments by pension plans in Canada. Since then, there has been a steady reduction in the value of CPP's investments in Canada and a steady rise in U.S. investments. U.S. stocks rise in value In 2005, 74 per cent of the CPP's assets were invested in Canada. By 2015 it was down to 24.1 per cent. For the last two years it has stood at 12 per cent. At the same time, the plan's assets have grown — from $81.3 billion in 2005 to $714 billion on March 31. Its assets are projected to hit $1 trillion in the next few years, making it one of the largest pension plans in the world. However, as the proportion of the CPP's investment in Canada has dropped and its assets in the U.S. has increased, so too have questions about where the money is going. In March 2024, dozens of top Canadian executives penned an open letter to Finance Minister Chrystia Freeland and provincial finance ministers, concerned with "the decline in Canadian investments by pension funds and its impact on the Canadian economy." They called on the ministers "to amend the rules governing pension funds to encourage them to invest in Canada." "Investments made in Canada do not impact just pension portfolios; they also have a considerable impact on the country's economy; generating jobs, improving incomes and increasing contributions to retirement plans," the executives wrote. In April 2024, the federal government appointed former Bank of Canada governor Stephen Poloz to look at how to "catalyze greater domestic investment opportunities for Canadian pension funds." That resulted in proposals in the fall economic statement including measures to make it easier for pension funds to invest in Canadian companies, municipal-owned utility corporations, airports and AI data centres. Daniel Brosseau, co-founder of the Montreal investment firm Letko Brosseau, is concerned by the "long-term erosion" in Canadian pension fund investment in Canada and its impact on the economy. "It's been a long-term decline, and we're basically investing very little in Canada now," he said. Brosseau doubts the measures in the fall economic update will make much of a difference. "They don't allow the pension funds to distinguish between a Canadian and a foreign investment in any way," he said. "They will have no effect." Instead, Brosseau suggests the government tax the foreign income of pension plans. "They could clearly see a difference between a Canadian investment and a foreign investment, and that would change their behaviour," he said. Chris Roberts, director of social and economic policy for the Canadian Labour Congress, says the CPP's role in the Canadian economy is an important debate that is about to heat up — and he wants all Canadians to participate. "These are people who pay into the CPP every day and will draw a CPP benefit when they retire," he said. "They're often of the view that the CPP Investment Fund should invest more at home and create jobs and economic opportunities here in Canada." Lessons from Quebec Unlike Quebec's Caisse, which has a double mandate to make money and to also invest in Quebec's economic development, the CPP's only mandate is to make money, Roberts said. Sen. Clément Gignac, an economist by profession and a former Quebec cabinet minister, has asked questions in Senate proceedings about where the CPP is investing. He says Quebec has successfully made money for the province's retirement fund while also bolstering economic development. Gignac said Carney's pledge to invest in infrastructure could create opportunities for the CPP and other pension funds to invest in Canada. "Do we need to change the mandate officially, or will it come naturally?" he said. Gignac would like a Senate committee or a special commission to take a closer look at how Canada's largest pension plans, dubbed the Maple Eight, are investing their assets abroad. "If anything happens and geopolitics deteriorate, or we have a hostile foreign country who suddenly seize our assets, just like we have seized assets from Russia … or change the rules of the game on taxation, just like Mr. Trump wants to change them — it would be important if we have a robust risk-management analysis." Trish McAuliffe, president of the National Pensioners Federation, said her members would like to see prudent, ethical investment by the CPPIB as well as increased investment in Canada. "We love nothing better than to see great investments here…. investments in infrastructure, hospitals. Things that will benefit our age demographic but also our community at large," she said. McAuliffe said the federation attends stakeholder meetings with the CPPIB, and while at the early stages, she expects the question will be part of the federation's convention in October. "We're hopeful … that they're going to make the right decisions," she said. "But make no mistake — people are watching."
CTV News
a day ago
- Business
- CTV News
Province quietly releases Alberta pension survey results with 63% opposed
Premier of Alberta Danielle Smith speaks to media prior to the First Minister's Meeting in Saskatoon on Monday, June 2, 2025. THE CANADIAN PRESS/Liam Richards The province quietly released the results of a survey conducted to determine if Albertans want their own separate pension plan. Results from the survey show 63 per cent of respondents were opposed to the Alberta Pension Plan (APP). Danielle Smith has been tossing around the idea of a provincial pension plan since becoming premier in 2022, saying that the Canada Pension Plan (CPP) hasn't been fair to Albertans. Despite the lack of favour for the APP, a statement from the province said they won't be giving up on it just yet. 'While recent surveys on an APP show public opinion may be shifting, we will continue to engage with Albertans on this topic through the Alberta Next panel,' said a statement from the Ministry of Treasury Board and Finance. 'The Alberta Pension Protection Act guarantees we won't replace the CPP with an APP unless Albertans approve it in a referendum.' Results from the survey show 10 per cent of respondents were pro-APP while 12 per cent were unsure. 15 per cent of the responses were incomplete. A February Leger poll showed only 55 per cent of Albertans opposed an APP, with 23 per cent in support — a decrease from the 63 per cent opposed in 2023 and 2024 polls. A Janet Brown Trend Research poll from May found only 45 per cent were opposed to an APP with 55 per cent of respondents in support.
