Mr. Speaker, the federal debt as presented in federal budget documents does not include the financial assets of the Canada and Quebec pension plans, CPP and QPP.
That said, when presented for the country as whole, i.e., including all levels of government, Canada’s net debt, total liabilities less financial assets, does include the financial assets of the CPP and QPP. These assets have been accumulated through decades of savings by Canadians and are of significant value.
Statistics Canada and the International Monetary Fund do not publish a measure of Canada’s net debt that excludes the financial assets of the CPP and QPP, given that these assets are considered part of the general government sector under international accounting standards.
Canada’s well-funded public pension programs are an international rarity. Most advanced countries operate pay-as-you-go systems, where current contributors pay for current retirees. By accumulating CPP and QPP assets over decades, Canadians have ensured that Canada’s public pension plans are sustainable, meaning that they are well funded for at least the next 75 years at current contribution rates, which greatly enhances Canada’s overall fiscal sustainability.
The choice that Canadians have made to set money aside to keep the CPP and QPP sustainable for future generations is a tremendous fiscal advantage for Canada relative to most other countries, many of which have chosen not to fund their pension plans. As a result, these assets are rightly included when assessing Canada’s fiscal position relative to its international peers.