At the very outset of the Canada Pension Plan, it was agreed that the contribution rate would not be enough. Around the year 2000, there was a consensus that the rate should be increased, even though in 1966, the thinking on the birth rate, in particular, was quite positive. In the end, there were less children born than expected and therefore the population aged much more quickly.
In my predecessor's actuarial report, in 1993, it was made clear that the contribution rate should be increased to as high as 14%, simply because of the aging of the population. Governments made the decision in 1997 and an agreement was confirmed on Valentine's Day. They truly agreed that day. They decided to increase contribution rates, decrease the growth of benefits by approximately 10% in the long term, and establish the Canada Pension Plan Investment Board in order to obtain better returns and to limit the costs of the Canada Pension Plan.
Since 2000—and this will apply up until around 2020—contributions to the plan total more each year than the benefits paid out. This contribution surplus is transferred to the Canada Pension Plan Investment Board, which then invests this money in a diversified portfolio made up of assets, shares, bonds, real estate, infrastructure and so on.