Mr. Speaker, Bill C-2 reflects what Canadians have said throughout the consultation process. In fact the motion would eliminate the restrictions that apply to other pension plans in Canada, essentially specific restrictions that are part of the fed-prov agreement.
The regulations which are part of Bill C-2 require applying the appropriate provisions and regulations of the Pension Benefits Standards Act to the new CPP investment board, regulations that in fact state things like the fund could not hold more than 30% of voting shares of a company or that it could not invest more than 10% in the security of a single company.
As joint stewards of the plan and as a result of the fed-prov negotiations and agreements, Bill C-2 will specify the arrangements under which provinces will have access to portions of the new CPP funds the board allocates to bonds.
Essentially the investment the fund makes requires that domestic equity be passive and that it be reviewed after three years. Provinces will have a guarantee of access to a portion of the new funds and thereafter, after three years, their access will reflect a percentage of provincial and municipal bonds held by pension funds in Canada.
That being said and despite the restrictions, the chief actuary still says the fund will receive a 3.8 per cent real rate of return, which is a good rate of return and one that reflects the priorities and the best interest of Canadians.