Canada Pension Plan Investment Board (CPP Investments) was created in 1997 by an Act of Parliament with the objective to invest the Canada Pension Plan (CPP) fund assets to maximize returns without undue risk of loss, having regard to the factors that may affect the funding of the Canada Pension Plan.
This decision was made to help the CPP remain sustainable for the long term. We prudently invest the amounts transferred to us by the CPP, helping to provide a foundation on which Canadians can build financial security in retirement.
In December 2016, following federal and provincial agreement, Royal Assent was given to Bill C-26, An Act to Amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act. This Act increased the amount of retirement pensions and other benefits that will be paid for contributions made after 2018. It also increased both the rate of contributions required on earnings covered by the CPP, and the upper limit on covered earnings. These increases began in January 2019 and are being phased in over seven years.
Every three years, the Office of the Chief Actuary (OCA) conducts an independent review of the sustainability of the CPP over the next 75 years. The OCA’s most recent report, released in December 2019, reconfirmed that the CPP is sustainable for the next 75 years at the legislated contribution rates as of December 31, 2018.
At September 30, 2022, the Fund’s 10-year annualized net return was 10.1% and the Fund is projected to reach the trillion-dollar mark by fiscal 2033.