QPP faces crisis

CPP’s healthy reserve should be used to cover Quebec’s shortfall: Report
By Shannon Klie
|Canadian HR Reporter|Last Updated: 02/21/2008

The Quebec Pension Plan (QPP) is facing a crisis and it is the economic and social responsibility of the federal government to use the Canada Pension Plan (CPP) to avert disaster, according to a retired federal bureaucrat.

Due to a steadily declining birth rate and a lower number of immigrants, the QPP reserve fund will most likely run out by 2051, according to the plan’s 2007 actuarial report. Meanwhile, the Office of the Chief Actuary projects the CPP reserve fund will continue to grow without any changes to contribution or benefit levels.

Given the CPP’s projected health, the federal government should lend a portion of the reserve fund to the QPP once its reserve runs dry, said Edward Tamagno, author of the Caledon Institute on Social Policy’s report