Let's talk about expanding the existing CPP as we know it. We have no concerns about the fact that the CPP, over 12 years ago, was put on a solid foundation, actuarially. We're now paying close to 10%, between Canadians and their employers, into that plan. The chief actuary has indicated that on an actuarial basis, it's pretty sound for the next 70 to 75 years.
We have many concerns about expanding it. One is that it represents a further payroll tax at a time when we don't believe Canadians and their employers need more tax. We're coming out of a difficult economic situation here in Canada, as well as around the world. It also represents inflexible benefits and contributions: if it's the same for one individual, it's the same for all individuals. Canadians, we believe, save in different ways towards retirement and at different times in their lifetimes.
We're also concerned about the cost, because we think that any meaningful increase in the CPP would have huge costs attached to it. Finally, we're concerned about the lack of diversification of retirement savings. We've always learned not to put all our eggs in one basket.
Those are some of our concerns about the existing CPP.
In terms of a voluntary arrangement, there was some talk earlier about auto-enrollment. We've seen elsewhere in the world that, actually, automatic enrollment of employees in a voluntary arrangement, with the right to opt out, can actually increase the coverage level. Most people, given the choice, might not necessarily elect to participate. However, if you put people in and give them the right to get out if they really want out, most won't get out. That's what we've seen elsewhere in the world.
Even the feature of auto-escalation of contributions--once you get them, let's automatically increase their contributions on a regular basis, unless they choose not to do that--is another way of perhaps getting Canadians to save.