Market Overview

Canada Pension Plan Investment Board begins managing additional CPP contribution amounts affecting millions of future beneficiaries


TORONTO, Jan. 1, 2019 /CNW/ - Starting this week, Canada Pension Plan Investment Board (CPPIB) will receive and invest additional Canada Pension Plan (CPP) contribution amounts, helping to safeguard increased retirement income for current CPP contributors and future generations.

Canada Pension Plan Investment Board (CNW Group/Canada Pension Plan Investment Board)

Federal and provincial governments decided in 2016 to expand the CPP to provide enhanced future benefits for workers who contribute, creating a stronger foundation for retirement. As the investment manager of the CPP Fund, CPPIB is responsible for prudently investing the additional contribution amounts arising from the enhancement to the CPP. CPPIB started investing CPP contribution amounts 20 years ago.

Both the base CPP and additional CPP will have the full advantage of CPPIB's global network, expertise, investment strategies and risk governance framework.

"Over the past year, CPPIB has worked to ensure that both the base CPP and the additional CPP amounts will be managed efficiently and with a view to the opportunities that may be created as the CPP Fund grows," said Mark Machin, President & CEO, CPPIB. "We will invest the additional stream of CPP with the same attention to appropriate growth, risk control and transparency that Canadians count on."

CPPIB has designed an investment structure that will address the different funding requirements of the base CPP and additional CPP. This structure ensures fairness between the base CPP and additional CPP accounts, and that both benefit from CPPIB's strengths and have a widely diversified portfolio with appropriate distinct risk characteristics for each account.

CPPIB has been building, and continues to build, highly-scalable investment programs today that can comfortably handle the increased size of the CPP Fund to serve contributors and beneficiaries now and in the future.

About Canada Pension Plan Investment Board

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits in the best interests of 20 million contributors and beneficiaries. In order to build a diversified portfolio, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At September 30, 2018, the CPP Fund totalled C$368.3 billion. For more information about CPPIB, please visit or follow us on LinkedInFacebook or Twitter.

Note to editors: An infographic demonstrating how CPPIB expects to grow the additional CPP investment portfolio and the subsequent impact on the future retirement income available to CPP beneficiaries is available in jpeg or PDF.

Additional CPP Infographic (CNW Group/Canada Pension Plan Investment Board)

SOURCE Canada Pension Plan Investment Board

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