New Brunswick Finance Minister Cathy Rogers is praising the new agreement in principle about changes to the Canada Pension Plan.
She says the full benefit of the enhancements will be realized by today’s younger workers when they retire, and are able to live independently.
Rogers says the changes aren’t a burden on business because they are being phased in over seven years, starting in 2019.
The agreement in principle has two major recommendations including an income replacement increase from one quarter, to one third of pensionable earnings.
That means that, at maturity, a Canadian with $50,000 in constant earnings throughout their working life would receive a yearly pension benefit of about $16,000 instead of the $12,000 they would currently receive, or $4,000 more per year.
As well a 14% increase in the maximum amount of income subject to the plan, projecting to equal $82,700 in 2025.
Before the changes take effect, seven of ten provinces representing two thirds of the national population must ratify the agreement in principle.