QPP reserve in dire straits

Fund could disappear by 2051
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|hrreporter.com|Last Updated: 02/07/2008

The reserve fund of the Quebec Pension Plan (QPP) will run out within 44 years, and the Canada Pension Plan (CPP) should help out, according to a retired federal bureaucrat.

The reserve was supposed to keep the QPP stable for the next several decades, but with Quebec's working-age population expected to shrink by six per cent by 2051 (because of declining birth rates and lower immigration), the fund, which stood at $33 billion in 2006, is in danger of disappearing altogether, according to the plan's latest actuarial report.

If the plan isn't made fiscally secure, Quebec and the rest of Canada will suffer, said Edward Tamango, a retired director general for what is now the Department of Human Resources and Social Development and the author of a paper commissioned by the Caledon Institute of Social Policy.