Due to the aging of the population, the Caisse de depot et placement du Québec (CDPQ) is approaching the time when it will disburse more than it receives in contributions. Its big boss, Charles Emond, however, assures that the institution has “much more money” than necessary.
“There is no concern because today, there is much more money than what we need for the obligations of these plans,” said the president and chief executive officer of the CDPQ, on the sidelines of a speech before the Canadian Club of Montreal.
The Caisse manages the portfolio of 46 depositors linked to the Québec government, in particular the Québec Pension Plan (QPP), to which Québec workers contribute, and the pension plan for public service employees.
As of 2024, the institution will find itself in a situation where it will pay “slightly” more benefits than it receives in contributions, said Mr. Emond who answered a question from Mélanie Dunn, the chief executive officer of Cossette, during a presentation in front of 700 people. It will be a first in the history of the institution founded in 1965. “I don’t want it to be the clip of the day, he joked. You don’t have to worry. It will be only 1% of assets from 2032.”
The Caisse relies on the returns on its portfolio to bridge the gap between benefits and contributions, Mr. Emond told reporters after his presentation. “At some point, people get older, there are more benefits that are paid to people than workers who will contribute, for example. […] It’s minor. This means that these are the Caisse’s returns on [l’actif de] 400 billion dollars which finance these programs. »
“We have more than enough returns and already a lot of money in the bank to continue in the future for a very, very, long time. Pensions are not at risk at all,” he added.