Federal and provincial ministers of finance announced the Canada Pension Plan is on sound financial footing at the conclusion of their triennial financial review of the CPP on Tuesday.

“Our analysis suggests that the 9.9% contribution rate will be sufficient to sustain the plan into the foreseeable future,” stated the federal Finance Minister Jim Flaherty. “We have therefore agreed that the contribution rate will remain unchanged.”

The CPP provides over 3 million retired Canadians with maximum benefits of up to $844 per month. And with assets projected to grow to $250 billion in the next 10 years, the plan has been recognized internationally as an affordable model for securing adequate retirement income in the face of population aging and economic change.

“The successful completion of the CPP triennial review underlines our government’s commitment to collaborative management in this key area of joint federal-provincial jurisdiction,” added Flaherty. “Retirement security is a vital element of independence for today’s and tomorrow’s seniors, and the measures proposed today will ensure that the CPP continues to address the needs of Canadians, while remaining affordable and fair for future generations.”

As well, the finance ministers commended the CPP Investment Board for signing the United Nations’ Principles for Responsible Investing, which provide a best practice framework to help integrate consideration of environmental, social and governance factors into investor decision-making.

Ministers also proposed changes to how the plan operates. They include revising the CPP disability contributory requirements for plan members with 25 or more years of contributions and operationalizing the existing requirement to fully fund CPP benefit enhancements. The proposed changes will require some legislative and regulatory changes by federal and provincial governments. Ministers agreed to make best efforts to bring them into force as early as possible.

The ministers agreed that they would continue to examine whether changes need to be made to the CPP to reflect the growing number of older Canadians who wish to remain active in the labour force , in the next review. They also agreed that creating an environment conducive to continued sustainable economic growth and rising living standards will be critical as Canada faces the challenges of an aging population.