Legislation is being introduced in Ottawa today to consolidate the investment management of all Canada Pension Plan assets into the CPP Investment Board.

The move is expected to help ensure a sound public pension plan for the future, says John Manley, Deputy Prime Minister and Minister of Finance. The Chief Actuary of Canada has estimated that these changes are expected to increase returns on CPP assets by approximately $75 billion over 50 years.

“These changes will transfer the management of the cash operating balance and the bond portfolio to the CPP Investment Board, and represent the final steps in having all CPP assets managed by the Board,” says Manley. “The three-year phase-in will ensure a smooth transition for capital markets, provincial borrowing programs and the CPP Investment Board. Having all CPP assets managed by independent professionals will enhance the investment performance, diversification and risk management of the entire CPP portfolio.”

All provincial and territorial Ministers of Finance support these proposals, says Finance Canada.