The CPP expansion would consist of two things. Two things would be expanded. The benefit rate, which is currently 25%, would be increased to 70%. The maximum earnings on which the CPP applied, called the YMPE, would be increased from $46,300 this year to the maximum applicable for tax purposes to a registered pension plan, which is $116,000 a year.
This expansion, contrary to all previous CPP amendments, would be done a fully funded basis. This is a new provision in the CPP Act.
So the day that the expansion is implemented, the 70% will apply, but only to earnings earned since age 18. This means that the 70% will be earned gradually. It will take 47 years before the 25% benefit rate will reach the 70% level.