The document discusses the Canadian Pension Plan (CPP) and various retirement savings programs, highlighting the need for better funding and management of retirement options in Canada. It revisits past government policies and critiques current strategies regarding retirement benefits and taxation. The author emphasizes the importance of empowering individuals in financial planning and urges changes to ensure long-term sustainability of programs like the Old Age Security (OAS) and the CPP.

1. 2019 Election – CPP and
CPPIB – Canada – August
2019
BY: PAUL YOUNG, CPA, CGA
DATE: AUGUST 15, 2019

2. Paul Young - Bio
• CPA, CGA
• Business Administration – Accounting
Diploma
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Emerging Technology
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain ManagementContact information:
Paul_Young_CGA@Hotmail.com

3. Overview
It is funny how people read the by-lines, but never actually look at the programs and/or asked the question to
why people are not doing more for their retirement. Here are examples of programs including the trends. JT
talks about retirement, but has never once said how he will fund the changes to OAS or CPP, why?
 CPP - http://www.cfib-fcei.ca/english/article/5172-myths-versus-reality-canada-pension-plan-cpp.html
 TFSA - https://www.envisionfinancial.ca/lang/en/Personal/Invest/InvestmentPlans/TFSA/ or
http://business.financialpost.com/personal-finance/retirement/rrsp/10-things-you-should-know-
about-tfsas?__lsa=5230-a42a.
 RRSP - http://www.winnipegfreepress.com/business/finance/canadians-have-lots-of-retirement-
savings-options--297380641.html.
 Harper and Oliver – CPP - http://business.financialpost.com/personal-finance/retirement/ottawa-to-
consider-voluntary-canada-pension-plan-expansion-joe-oliver-says
 Home Equity - http://www.pwc.com/en_CA/ca/real-estate/publications/pwc-emerging-trends-in-real-
estate-2015-en.pdf. Baby Boomers are likely sitting on more equity due how much housing prices have
risen over the past 30 years: http://creastats.crea.ca/natl/index.htm. Harper has changed the rules on
mortgage, by tightening them up: https://ca.news.yahoo.com/blogs/canada-politics/four-great-things-
jim-flaherty-did-canada-130221848.html.
 Guaranteed Income Supplement - http://www.servicecanada.gc.ca/eng/services/pensions/oas/gis/
 CD Howe - http://www.cbc.ca/news/business/canadians-are-saving-enough-for-retirement-says-c-d-
howe-study-1.3100653
 OAS issues - http://www.therebel.media/justin_trudeau_new_ad
Source:
 BMO - http://www.bmo.com/pdf/ewp/womeninwealth/15-375-BWI_Q1_2015-women-in-wealth-CDN-
E05web.pdf or http://www.winnipegfreepress.com/business/bmo-study-more-canadians-have-savings-
plans-but-fear-they-arent-saving-enough-298861601.html. Why are Canadians not saving enough?
Could it be kids are living at home longer and/or high mortgages or other household budgets pressure?
Or OAS sustainability - http://www.newswire.ca/en/story/1467819/canada-pension-plan-and-old-age-
security-benefit-rates-effective-january-1-2015. People are living longer as compare to when OAS was
first introduced - http://www.cbc.ca/news/health/life-expectancy-in-canada-hits-80-for-men-84-for-
women-1.2644355. So, Harper is making adjustment to ensure the OAS is there for people in the
future. Yet JT never comments on people living longer or how he would fund the program, why? Tax
Programs - http://advisors.tdwaterhouse.ca/public/projectfiles/1479dc27-9b72-4af9-b9c1-
d83af85f423b.pdf.

4. Agenda
 What is Canada Pension Plan
 How does CPP work
 Who is CPPIB
 What are CPPIB Returns vs Stock Market
 Government Policies
 Gerald Butts / CPP
 Payroll Taxes
 Blog – Retirement
 What’s needs to be done
 CPPIB / 2019

5. Average life
expectancy
Source -
https://www.statista.com/stat
istics/274513/life-
expectancy-in-north-
america/

6. What is CPP?
 The Liberal government of Prime Minister Lester
B. Pearson in 1965 first established the Canadian
Pension Plan
 In March 2013, average monthly benefits for new
retirement pension (taken at age 65) was $596.66
and the maximum amount was $1,012.50.
Monthly benefits are adjusted every year based
on the Consumer Price Index. CPP benefit
payments are taxable as ordinary income.

7. CPPIB
 The CPP Investment Board, formally
the Canada Pension Plan Investment
Board, is a Canadian Crown
corporation established in 1997 to oversee
and invest the funds contributed to and
held by the Canada Pension Plan (CPP). As
of December 31, 2015, the CPP Investment
Board manages over C$282 billion in
investment assets for the Canada Pension
Plan on behalf of eighteen million
Canadians.

8. CPPIB

9. CPPIB

10. Government
Policies
 Liberal Party plan to move OAS from 67 to
65
 Liberal party plan to push CPPIB to invest in
Canadian Infrastructure projects

11. CPP and Gerald Butts
• CPP is payroll tax match equally by
business and employee
• CPP rates are going up which will
force the costs to business -
https://www.newswire.ca/news-
releases/ei-insurance-rate-hike-
another-impediment-to-small-
business-success-cfib-644513123.html
• CPP deduction reduces a person’s net
pay.
• CPP goes into fund that is separately
managed
• Liberals have secretly discussed using
CPP to fund infrastructure -
http://nationalpost.com/opinion/kelly
-mcparland-justin-trudeaus-hidden-
agenda

12. TWEET / Taxes Middle class is under attack -
https://globalnews.ca/news/3769136/taxes-middle-
class-liberals/
Trudeau’s GDP and Job growth are also not accurate
in terms of health of the economy -
https://www.slideshare.net/paulyoungcga/2019-
election-jobs-gdp-consumer-spending-housing-
canada
Canada is less competitive today than it was when
Harper left office -
https://www.slideshare.net/paulyoungcga/2019-
election-canada-and-global-competitiveness-may-
2019
Harper had the best middle class in the world, right?
https://www.youtube.com/watch?v=yOl37VcG89c
(Trudeau has failed the middle class)
https://www.slideshare.net/paulyoungcga/2019-
election-middle-class-liberals-vs-cpc-july-2019

13. Blog – CPP / Seniors
Canadian Seniors
Liberals love to mislead people on what Harper and the CPC did for seniors:
 Carbon tax hurts so people on fixed income – Carbon tax is regressive tax -
https://news.ontario.ca/ene/en/2019/04/ontario-stands-up-for-seniors-by-opposing-the-costly-federal-carbon-
tax-1.html
 OAS needs to be affordable - https://www.theglobeandmail.com/investing/personal-finance/article-how-
raising-the-age-for-cpp-and-oas-to-67-would-benefit-the-whole/
 Seniors and Poverty - https://cpj.ca/poverty-trends-2018/
 Harper introduced Pension Splitting https://www.moneysense.ca/news/trudeau-harper-clash-over-pensions-
and-income-splitting/
 Harper spent on Elderly benefits - https://globalnews.ca/news/2222185/reality-check-trudeaus-claim-harper-
slashes-funding-to-balance-budget-falls-flat/

14. Payroll Taxes
Source - https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions.html

15. Blog – Retirement
 https://business.financialpost.com/news/fp-street/cpp-investment-board-posts-8-9-return-for-2018-19-adds-35-
9b-to-
assets?utm_term=Autofeed&utm_medium=Social&utm_source=Facebook&fbclid=IwAR0L1SzFmHBfO0Mp2djFNu
vmBoN_o8FNI_jjsTpMLw6w6i6YDfk2OYateXA#Echobox=1557938311
 People need to own their own retirement plans and stop asking for government to take care of them!
 https://www.slideshare.net/paulyoungcga/2019-election-retirement-canada-may-2019
 Harper was looking at different options for CPP https://www.theglobeandmail.com/report-on-
business/conservatives-propose-voluntary-canada-pension-plan-expansion/article24621263/ (Voluntary
expansion. Trudeau decided on payroll hikes for CPP. Business call out these taxes and Trudeau said nothing -
https://www.cfib-fcei.ca/en/media/2019-cpp-increase-isnt-worth-pain-small-businesses
 Liberals wanted access to money so they could encourage CPPIB to invest in Liberals pet infrastructure projects
including the infrastructure bank - https://ottawacitizen.com/news/politics/federal-liberals-look-at-pension-funds-
for-infrastructure-help
 I warned people during the 2015 Election that Trudeau’s platform was all smoke and mirrors to hide his Trudeau’s
hidden agenda.

16. CPPIB / 2019
Source - https://www.canadianmanufacturing.com/financing/cppib-earned-1-1-per-cent-in-most-recent-quarter-cpp-fund-now-tops-400-
billion-237359/

17. Liberals and Payroll Taxes
@MPJenOConnell @MaryamMonsef @MarcMillerVM
https://www.bankrate.com/glossary/p/payroll-taxes/
Income tax go into a general fund
CPP and EI go into specific funds
I suggest you take a fund accounting course before making your tweets!
Did Brison not say CPPIB would be encouraged to invest infrastructure?
https://ottawacitizen.com/news/politics/federal-liberals-look-at-pension-
funds-for-infrastructure-help
@AndrewScheer

18. What needs to
be done
 The next government needs to review the CPP deduction rates
as part of looking at making income tax more fair -
https://www.slideshare.net/paulyoungcga/2019-election-
taxation-reforming-the-ita-and-shutting-down-tax-havens
 OAS needs to be moved back to 67 -
https://www.theglobeandmail.com/news/politics/keeping-oas-
age-at-65-will-eventually-cost-112-billion-a-year-budget-
watchdog/article29673290/ (Liberals never look at costs,
because all their policies are about emotions
 CPPIB needs to remain independence. Any changes to the
board should be approved by committee.
 CPP premiums should be tied to inflation
 Harper proposed voluntary expansion of CPP as part of allowing
people more pension plan options should be included as part of
the overall pension options
 All government pensions need to be moved to defined
contribution.
 CPP needs to review its death benefit