The CPP remains the most stable pension fund in the country, funded on a sound basis and well managed by professional staff independent of government.
Ottawa (22 May 2012) - Despite federal government scare tactics that the Canada Pension Plan (CPP) may not be sustainable in the future, it is now reported that the CPP Fund hit a record high value of $161.6 billion last year, adding more than $13 billion to its assets as its investment manager diverted money from battered stock markets to ramp up its stake in private equity.
The $161.6 billion value of its assets at the end of its fiscal year pushed it past the nearly $159 billion worth of assets reported by the Caisse de depot et placement du Quebec at its fiscal year-end Dec. 31. That makes the CPP the biggest pension fund in Canada, based on latest reported results.
The CPPIB saw a 6.6 per cent rate of return in fiscal 2012, despite declines on the Toronto Stock Exchange and other public markets.
A big driver of growth in challenging market conditions lays in the CPPIB’s strategy of taking money out of public markets to capitalize on distressed assets in the private sector, including holdings in infrastructure and real estate, opportunities that are less tied to macro economic factors.
This new information again refutes the idea that the CPP is unsustainable or in trouble. The CPP remains the most stable pension fund in the country, funded on a sound basis and well managed by professional staff independent of government. The only problem with CPP is that benefit levels are way too low to provide Canadians with adequate income security in their retirement.
The National Union of Public and General Employees (NUPGE) has been advocating for the improvement of CPP benefits to address this issue.
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE