Canada Pension Plan during their meeting this week. Here are five things to know.
1) A new mechanism will be introduced so Canadians who take time out of the workforce to raise children or due to disability don’t see a drop in their retirement benefits. The new portion of CPP will have “drop-in” provisions that will assign a higher income for those years and use that to calculate retirement benefits. The Finance Department defends the use of drop-in provisions because the “enhanced” CPP, as it is known, is based on a fixed, 40-year benefit accrual period making it easier to drop in amounts rather than dropping out years as is the case in the base CPP.
Read more from Financial Post