In 1966 Canada Pension Plan was established by the federal govt. of Canada and nine provinces. Initially CPP assets were getting invested in Canada’s govt. bonds. It was getting funded through compulsory contributions.
In 1997 Canada Pension Plan was having crisis. In benefits $17 billion were paid out and only $11 billion was collected in contributions. However Canadian and provisional government took remarkable action for to save CPP and strengthening for future. Politicians and Policy agreed to take following measures:
• Increase of contributions rate from 6% to 9.9%.
• Increase in projected annual return from 2.5% to 4%
• Reducing of Benefits
• Appointing of Canada Pension Plan Investment Board
Canada Pension Plan Investment Board
CPPIB was established by CPPIB Act and was acting as an independent and dedicated funds …show more content…
CPPIB was acting like a private company and was hiring investment professional with highly competitive compensation
In CPPIB its assets were getting passively invested through external fund managers. In 2000 CPPIB passively managed $44.5 billion, where 95% was invested in fixed income securities and 5% was in equity. And in 2011 it managed $148.2 billion where 32.8 was actively managed.
CPPIB was structured with the lines of private sector, professional investment management organization but with public sector accountability. Approval of the investment policies by the board of directors, hiring of president and CEO, setting of management compensation and other operational decision but the management team was taking the investment decisions. And if any changes are required for governance structure than federal government’s approval is
In 1997 Canada Pension Plan was having crisis. In benefits $17 billion were paid out and only $11 billion was collected in contributions. However Canadian and provisional government took remarkable action for to save CPP and strengthening for future. Politicians and Policy agreed to take following measures:
• Increase of contributions rate from 6% to 9.9%.
• Increase in projected annual return from 2.5% to 4%
• Reducing of Benefits
• Appointing of Canada Pension Plan Investment Board
Canada Pension Plan Investment Board
CPPIB was established by CPPIB Act and was acting as an independent and dedicated funds …show more content…
CPPIB was acting like a private company and was hiring investment professional with highly competitive compensation
In CPPIB its assets were getting passively invested through external fund managers. In 2000 CPPIB passively managed $44.5 billion, where 95% was invested in fixed income securities and 5% was in equity. And in 2011 it managed $148.2 billion where 32.8 was actively managed.
CPPIB was structured with the lines of private sector, professional investment management organization but with public sector accountability. Approval of the investment policies by the board of directors, hiring of president and CEO, setting of management compensation and other operational decision but the management team was taking the investment decisions. And if any changes are required for governance structure than federal government’s approval is