The managers of the Canada Pension Plan face the perspective of the hearings of the Finance Committee of the Commons Chamber after parliamentarians learned that only a small fraction of the billions of dollars of the Public Pension Plan is invested in Canada.
Liberal deputy Karina Gould, the newly elected president of the Committee, said it is important that the CPP is administered effectively, but she would like to know why the fund that provides retirement benefits for most Canadians does not invest more in the national economy.
“It’s worrying,” Gould said Thursday.
She said she wants to understand why little is invested in Canada and how the public pension fund could not only “reinforce the Canadian economy, but also support Canadians and their pensions.”
Gould said that the Committee will be occupied by celebrating prior consultations and examining the bill C-4, which includes a tax reduction for Canadians. However, if the members of the committee agree, he said that the hearings in the Canada Pension Plan could take place in autumn.
“In this economic moment in which we are, it is really important that we understand, you know, where they are investing our pension funds,” Gould said in an interview. “It is definitely something that could be of interest to the committee.”
Gould said that the committee hearings could also observe the CPP mandate and if he should see more to the double mission of the Caisse de dépôt et placement du Quebec – The public pension manager of the province accused of making money and investing in the economic development of Quebec.
“It’s an interesting question to explore,” he said.
Gould’s comments are produced after the Investment Board of the Canada Pension Plan (CPPIB), also known as CPP Investments, revealed that only 12 percent of CPP assets are invested in Canada, their lowest level. The largest part of its $ 714 billion fund, 47 percent, is currently invested in the United States, its highest level.
Revelation has asked questions about whether CPPIB should invest more in Canada, while the country is in the middle of a commercial war with the United States.
Those who support the high level of investment in the United States by the CPP, including CPPIB itself, argue that the plan of the plan is to make money. They argue that US investments offer more diversity and greater returns, which help ensure that the plan can pay the benefits in the coming years.
Others, however, question why the plan is not doing more to invest in Canada to create Canadian infrastructure jobs and projects.
They are also worried about the exposure of the Plan to the US. UU. At a time when the administration of President Donald Trump has turned the country into a more risky place to invest.
Like Gould, the leader leader of the NDP and the finance critic, Don Davies, was surprised to know that CPP’s investment in Canada had fallen to 12 percent.
“I think it’s alarming. I mean, I think it’s only 12 percent of, you know, such an incredibly large money fund that Canadian employees and Canadian employers pay,” he said.
While Davies says that the fund is well managed, he wants the government to review the CPPIB mandate.
“I personally believe [the mandate] It must be expanded to also include the development of the Canadian economy, “he said.
“There is no shortage of projects that strengthen our economy and also provide good returns to workers and employers,” said Davies.
“I think Canadians would be surprised to know that their own pension funds are being used to invest in other countries in such a very disproportionate way that in their own country.”
Davies said he would welcome hearings on the issue of the Finance Committee, of which he is not a member.
Conservatives have not yet responded to a request to comment.
