Wed Apr 6 11:48:23 EDT 2005
The Canadian Pension Plan (CPP) Trust Fund is intended to provide enough
income, in addition to a constant level payroll tax (now set at 9.9% of
covered earnings), to allow the program to pay all future CPP benefits. =
I
believe that the CPP planning horizon is 100 years. If so, I'm not sure =
if
the funding program requires a steady or rising Trust Fund at the end of
that horizon (which it should).
A nice overview of issues and responses to investing a social security =
trust
fund in equities is Robert Palacios, "Managing Public Pension Reserves, =
Part
II: Lessons from Five Recent OECD Initiatives," The World Bank, Social
Protection Discussion Paper Series, No. 0219, at
http://wbln0018.worldbank.org/HDNet/hddocs.nsf/View+to+Link+WebPages/36868B30A2B0659685256
C000073B328?OpenDocument
Steve Sass
Associate Director for Research
Center for Retirement Research at Boston College