I.

Introduction

Canada Pension Plan (CPP), program of the Canadian federal government that provides income for retired and disabled people and for survivors of deceased individuals. Federal legislation created the CPP in 1965, and the CPP took effect at the beginning of 1966. All provinces and territories participate in the plan, except for Québec, which created a similar plan, the Québec Pension Plan (QPP), in the same year, based on an agreement between the federal government and the provinces. The CPP is funded by employer and employee contributions. In 1997 the CPP had nearly four million beneficiaries, and total benefits paid exceeded C$17 billion.