An Act to amend the Canada Pension Plan

This bill makes a targeted change to the Canada Pension Plan Act concerning how provinces can opt out of the national plan to set up their own comprehensive pension plan, similar to what Quebec has done with the Quebec Pension Plan.

Under current law, the federal government can make regulations allowing a province to exempt itself from the Canada Pension Plan and run its own comparable plan instead. This bill adds a new requirement before such a regulation can be made: at least two-thirds of the provinces that do not already have their own comprehensive pension plan must consent, and those consenting provinces must together represent at least two-thirds of the population of that group of provinces. In effect, a province could no longer leave the Canada Pension Plan unilaterally or through federal approval alone; it would first need broad buy-in from most of the other provinces still participating in the national plan.

The stated reasoning, laid out in the bill's preamble, is to protect Canadians' pension benefits from being disrupted if a province decides to withdraw from the Canada Pension Plan, by ensuring such a major change has wide provincial support before it can happen. If passed, the change would take effect 180 days after the bill receives royal assent.

This bill adds a new requirement to the Canada Pension Plan that regulations allowing a province to opt out with its own comprehensive pension plan can only be made if a set threshold of provincial consent is obtained first.

• New condition on existing regulatory power — regulations under subsection 3(2) of the Canada Pension Plan, which currently allow a province to be exempted so it can run its own comprehensive plan, may now only be made with added conditions attached.
• Consent threshold created — at least two thirds of the provinces that do not already have a comprehensive pension plan must consent, and those consenting provinces must together hold at least two thirds of the population of that group of provinces.
• Who grants consent — the lieutenant governor in council (the provincial Cabinet) of each relevant province must signify consent; no other method of provincial approval is specified.
• No criteria set for withholding or granting consent — the bill does not state any standard, process, or timeline governing how or why a province's Cabinet decides to consent or refuse.
• Delayed effect — the change comes into force 180 days after royal assent, with no further review or sunset provision stated in the text.