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CPP Actuarial Adjustment Factors Study Released by OSFI

May 04, 2017 - Advocacy

The Office of the Superintendent of Financial Institutions (OSFI) released Actuarial Study No. 18: Canada Pension Plan Actuarial Adjustment Factors. This report found that the legislated contribution rate of 9.9% is sufficient to sustain the Canada Pension Plan financially over the long term. Assets are expected to grow to $476 billion by 2025 (this is 6.5 times the annual expenditures).  The contribution rate of 9.9% will be sufficient to cover expenditures until 2020, afterwards a portion of investment income will be required (by 2050, 26% of investment income will be necessary to pay expenditures). The ratio of assets to the following year’s expenditures is projected to grow to 7.4 by 2090 (remaining stable at 6.5 for most of the time in between 2025 and then). The number of contributors is expected to grow to 15 million by 2025 while beneficiaries are expected to increase from 5.1 million in 2016 to 10.2 million in 2050. Read the full report and learn more.