(January 19 – 15:15 ET) – The Canada Pension Plan Annual Report for 1998-99 was tabled today. During the 1998-99 fiscal year, it provided more than 3.4 million people with $18.2 billion in retirement pensions, disability and survivors benefits, and benefits for dependent children, says the Department of Finance in a prepared statement.
The Annual Report confirms the results of the last Actuarial Report on the Canada Pension Plan, produced in December 1998 by the Chief Actuary of the CPP, which found the Plan to be financially sound, now and for the future, says Finance.
A panel of three independent actuaries supported this finding. Federal and provincial finance ministers reached the same conclusion last month when they completed their first formal review of the Plan’s financial state since important changes came into effect in January 1998.
The 1998-99 Annual Report contains information on the CPP fund, including the investment policy. In addition, the Report explains the services that the CPP provides.
Highlights from the report include the following:
> The CPP is one of the least expensive pension plans to administer.
> Administrative expenses represented 1.67% of the benefits paid,compared to an average of 5% for large private-sector pension plans.
> The CPP is fully portable and benefits are protected against inflation.
> This year about 2.7 million CPP Statements of Contributions were mailed to Canadians between the ages of 18 and 29. Last year 2.1 million statements were sent to Canadians aged 30 to 39 and 50 to 59.
> CPP systems are Year 2000 ready. This goal was achieved in the fall of 1998, and Canadians will continue to receive their benefits without interruption.
-IE Staff