The CPP has a $500 billion surplus but the media won't tell us.

Deserved benefits for Canada’s 99%, mostly struggling

Introduction

Over the past ten years, as a Professor Emeritus who taught The Mathematics of Finance, I have studied the Canada Pension Plan (CPP). Overwhelming evidence shows that, under-the-radar, millionaires in Canada’s greedy financial industry have orchestrated a massive cover-up that is depriving 99% of Canadians of hundreds of billions of deserved dollars, and much more. Actuaries, who also have much to lose, are secretly sacrificing their integrity so that they can continue to enjoy substantial income. Finally, because our entire mainstream media is owned or controlled by the financial industry, the most newsworthy, impactful story in Canada in years is not being published. Here is why. You be the judge.

For the past 15 years, CPP Investments’ has been the best pension fund investor in the world, averaging a 10% return. Global SWF, a New York-based pension industry specialist ranked CPP Investments as the best investor of 300 pension funds worldwide, as shown below.

According to our Chief Actuary, only a 6% return is needed to fund all CPP pensions for the next 75 years.

The impact of this investment prowess on individual Canadians is monumental. Consider, for example, a 50-year-old in 2010 who had already contributed $100,000 to the CPP. With a 6% return, that $100,000 becomes $240,000 today. With CPP Investments’ 10% return, that $100,000 becomes $418,000 today, constituting a $220,000 surplus in his personal CPP account.

Based on standard pension practice, he should now receive some of that $220,000 surplus, as I did as a professor at Ryerson University in 2000. Because the CRA ordered a surplus distribution, professors received as much as $20,000 each. Ryerson’s surplus was only 18% above target. The CPP’s $500 billion surplus is 200% above target.

Even though the CPP holds 10% of the lifetime earnings of most Canadians, our disgracefully deceptive Chief Actuary has full control. Our CRA and Auditor General have no jurisdiction. Even though pension experts recommend every pension fund have a Board of Governors composed of contributors and pensioners like you and me, the CPP has no such Board.

Millions of our fellow Canadians are struggling financially. There is a solution.

A recent study found that 43% of Canadians are within $200 of insolvency.
Another study indicates “54% of Canadians currently have credit card debt, with 72% of Millennials (ages 29-44) carrying such debt.” The credit card interest rate is roughly 20%.
Food bank usage has doubled since 2019.
In Ontario, for example, mortgage delinquency rates are up by 135.2 per cent.
Canada’s ranking in the World Happiness Report plummeted from sixth place in life-satisfaction standings ten years ago to 25th place today, the worst ever. When only Canadians under 25 were tabulated, Canada fell to 71st. Notably, Finland is ranked number one. Finland’s financial industry earns 18% of all corporate profit compared to Canada’s 47%.
Young Canadians are struggling with mental health. Greenshield’s research below confirms this.

“TORONTO, Nov. 19, 2025 /CNW/ - A new survey from GreenShield, Canada's only national non-profit health care and insurance organization, conducted in partnership with Mental Health Research Canada (MHRC), reveals that over 80% of Canadian youth are overwhelmed by stress and anxiety about their future. Economic pressures – including job insecurity and the rising cost of living – are key drivers.”

Meanwhile, millionaire members or our financial industry are flourishing. The industry corners 47% of all corporate profit in Canada but only contributes 7.4% to our GDP. For comparison, the US financial industry collects 25-30% of all corporate profit. And Europe’s average is 20-30%.

The industry is awash in cash. In December 2025, the Globe and Mail reported that Canada’s big banks distributed $27.3 billion in bonuses. On average, an estimated 15,000 bank employees received $1.8 million each on top of their already substantial salaries.

Bank profits, and hence bonuses, are continuing to mushroom. On August 7, 2026, The Globe and Mail wrote that “several banks posted consecutive quarters of double-digit earnings growth.”

Benefit # 1 - Voluntary Contributions to CPP Investments

In 2011, Finance Minister Jim Flaherty researched letting Canadians voluntarily invest with CPP Investments. Canada’s financial industry was aghast, claiming voluntarily investing with CPP Investments would be “too confusing”.

Consider a 25-year-old Canadian who can afford to invest just $1,000 per year. Should it be with the financial industry, which, based on history, would likely give him a 5% return? Or should it be with CPP Investments which, based on history, would likely give give him a 10% return. The table below compares the two options.

The table shows that, by investing $1,000 per year to age 65 with CPP Investments, instead of the financial industry, a 25-year-old will have $535,000 more in retirement, in today’s dollars, all tax-free using a TFSA.

The analysis reasonably presumes a 2% inflation rate per year.

With millions of Canadians investing with CPP Investments instead of Canada’s financial industry, the industry would eventually lose billions of dollars.

There would need to be a limit to how much any Canadian is allowed to invest. Otherwise, CPP Investments would be overwhelmed and unable to attain their impressive return on investment. For example, Canadians could be limited to investing $1,000 per year with CPP Investments.

Such a policy would lead to considerable improvements in mushrooming income inequality in Canada. Low-income Canadians would be enjoying a 10% return on as much as 100% of their investments while millionaires would only enjoy a 10% return on a small fraction of their investments.

Benefit #2 - Make the CPP a DC pension plan instead of a DB pension plan

Albert Einstein is credited with stating, “Compound interest is the eighth wonder of the world.” The following analysis demonstrates why.

The CPP is a Defined Benefit (DB) pension plan. Your pension is defined, regardless of how well CPP Investments invests your contributions. What is wrong with a CPP DB pension plan? For 10 years, you have not benefitted from the CPP’s $500 billion surplus, accumulated by CPP Investments, using your money. Based on standard pension practice, Canadians should now be receiving much of this giant surplus, which is roughly $23,000 per Canadian, on average. However, our Chief Actuary, for self-serving reasons as explained below, has ignored millions of financially struggling Canadians and denied the esistence of this $500 billion surplus.

With the current CPP DB plan, you are receiving roughly a 4.75% return on your contributions while CPP Investments is achieving a 10% return, using your money.

In Canada’s private sector, almost all pension funds have migrated from a DB format to a DC format. With DC plans, the contributor receives the same return on investment as the investor achieves. With legislation, the CPP could easily become a Defined Contribution (DC) pension plan.

The following graph shows how the personal CPP fund of an average 25-year-old would accumulate under a DC plan versus a DB plan.

Notes:

Using a 2% inflation rate, 45.3% of all numbers above are the same value in today’s dollars. Thus, with a DC plan, the average 25-year-old Canadian would have a $150,000 CPP pension in today’s dollars. With a DB plan, his pension would be $23,500 in today’s dollars.
In the DC plan example, the pensioner has elected to live off the investment income of $150,000 per year, leaving $3.32 million ($920,000 in today’s dollars) in his estate when he passes on at age 90. Because of the DC format, the $3.32 million could be used at his discretion at any time for emergencies or an enhanced lifestyle.‍ ‍
In both cases, the average pensioner will start his pension at age 65 and live to age 90, a reasonable estimate of our average life expectancy in 65 years.
In the DB plan, the $323,000 remaining in his fund at age 90 will address a survivor’s pension. It is typically 60% of his partner’s pension up to a 100% CPP pension in total. With a DC plan, on her partner’s passing, survivors could continue to receive their partner’s $150,000 pension, with no ceiling, or extract the entire $3.32 million.

This analysis presumes CPP Investments will continue to earn their 10% return of the last 15 years. There is near zero risk. Even in the unlikely event CPP Investments only averages a 4.75% return for 40 years, the pensioner would still receive the same pension from the CPP that he would receive with the current DB plan.

CPP Investments’ 10% return will likely continue because they have many investment advantages over the average investor. While most Canadians can only easily invest in public equity and fixed income, CPP Investments invests in public equity, private equity, infrastructure, real estate and fixed income, worldwide. They have have 2,000 employees. most of whom are highly qualified. Many travel the world performing a detailed analysis on all investment possibilities. Then they recommend the ones that will be the most profitable. Because Canadians pay their enormous salaries, they should have the right to directly benefit from their investment prowess.

For example, while Google claims The Pennsylvania Turnpike is the most expensive toll road in the world, 407-ETR in Ontario charges as much as ten times the toll rate of The Pennsylvania Turnpike. CPP Investments owns roughly half of 407-ETR. Upon hearing of 407-ETR’s profitability, several Canadians have stated, “I wish I could own some of that investment.” If the CPP converted to a DC format, they could.

‍If the CPP switched to a DC format, as all private sector pension plans have, Canadians would likely enjoy 6.4 times the CPP pension.

Broader implications

If the CPP switched to a DC format, the impact on Canada’s financial industry and actuarial profession would be significant.

If 25-year-old Canadians knew that their CPP contributions could probably provide them with a $150,000 CPP pension in today’s dollars, many would:

Stop investing the recommended 15% of their income towards retirement,
Stop contributing to other pension plans,
Stop purchasing life insurance because the CPP pays a 60% survivor pension—eventually worth roughly $90,000 per year in 2026 dollars.
Demand the ability to voluntarily contribute to CPP Investments, as explained above.

The financial industry would then experience a multibillion-dollar reduction in profit from investment management fees collected from individuals, pension funds, and life insurance funds. Additionally, actuaries receive an estimated two thirds of their income from monitoring pension funds and life insurance funds. Because most of these funds would become unnecessary, employment for actuaries would plummet.

The evidence is overwhelming. The financial industry and actuarial profession have intentionally suppressed the news of the CPP’s surplus and potential so that they can continue to earn multimillion dollar incomes. Consequently, millions of younger Canadians, already disadvantaged and financially struggling, are being denied a transformative solution to their financial woes.

Currently, the CPP tells Canadians nothing about the status of their personal CPP fund. With a DC format, Canadians could be easily given an annual report of their contribution’s status. For example, they could be told annually,

January 31, 20??
Dear fellow Canadian,
As of December 31, 20??, you, and your employer on your behalf, had contributed $100,000 to the CPP. Thanks to CPP Investments’ 10% average return, your portfolio is now worth $200,000. If you keep contributing as you have, and CPP Investments continues with a likely 10% return, at age 65, you are on track to receive a $150,000 CPP pension in today’s dollars.

If this report indicated CPP Investments was repeatedly failing to reach its 10% target, then young Canadians could take heed and personally invest more towards retirement.

There are other benefits derived from a CPP DC format. In 2026, benefits for seniors, excluding the CPP, totalled $89 billion per year. Roughly one of every six dollars spent by the government is spent on benefits for seniors. These costs are increasing at a pace much higher than inflation. If most seniors eventually received a $150,000 CPP pension in 2026 dollars, seniors’ mushrooming benefit costs, in the form of the Guaranteed Income Supplement (GIS) and Old Age Security, would decline substantially.

What about seniors’ quality of life? Currently two million of six million seniors barely exist, struggling near the poverty line of roughly $25,000 per year. Changing the CPP from a DB to a DC format could reduce that number considerably. Eventually, with a CPP DC format, most of today’s two million seniors, with a much larger pension, would live a longer life with improved quality.

(As the author collects his large professor’s pension, half paid for by all Canadians, if he tried to exist on $25,000 per year, his quality of life as a senior would decline from an 9 out of 10 to a 2 out of 10. Moreover, Statistics Canada shows that those in the top quintile of earnings live 6.7 years longer than those in the bottom quintile.)

What about younger Canadians? Financial anxiety among young Canadians is increasing rapidly. Impossible house prices, high rents, unemployment, AI, low-paying jobs and the threat of a retirement in poverty are all contributing. If young Canadians were not only told a $150,000 CPP pension is likely, but they could have as much as 15% more income available today, their anxiety would decline substantially. Many suspect our capitalist system is rigged to favour the wealthy. The above CPP reform would show them that our politicians place the best interests of 99% of Canadians ahead of the interests of Canada’s millionaires.

Canadians under 25 are now ranked 71st on The World Happiness Index. The prospect of a retirement with a considerable income and no need to invest today towards retirement would boost that dismal ranking substantially. Young Canadians could receive a message of:

Thanks to the new CPP Defined Contribution (DC) pension format, Canada has your back.

instead of the current message,

Politicians are ignoring a simple solution to youth unhappiness so that millionaires can become even wealthier.

Summary:

If the CPP converts to a DC format, likely:

Young Canadians will receive a $150,000 CPP pension in 2026 dollars,
The number of seniors existing near the poverty line will plummet,
Soaring GIS and OAS costs will decline,
Young Canadians will have as much as 15% more income to spend today,
Anxiety among young Canadians will decline.

Why is this not happening? Likely,

The financial industry will lose billions of dollars in profit, per year,
Employment for actuaries will plummet.

The evidence is considerable that the financial industry, actuarial profession and mainstream media have colluded to prevent this possibility by using their substantial resources to suppress the news of the CPP’s surplus and potential.

Benefit # 3 - The CPP’s surplus - help for millions of Canadians who need immediate assistance

Recall that 43% of Canadians are within $200 of insolvency, 54% have credit card debt and the CPP has a 200% surplus. If our Chief Actuary followed standard pension practice and the principle of generational equity, he could, with no risk to future pensions, distribute some of the CPP’s $500 billion surplus.

For example, a $200 billion distribution from the fund would provide roughly $10,000, on average, to about 20 million Canadians, most struggling.

Such a distribution would have have broad economic effects. Additional income in the hands of millions of households would increase spending throughout the economy, supporting improvements in:

debt relief for 43% of Canadians
income inequality
employment
GDP growth
productivity
business profits
poverty reduction
charitable giving

Almost all social programs that help struggling Canadians increase our deficit. A $200 billion CPP surplus distribution would decrease our mushrooming deficit by an estimated $50 billion, through increased income tax, increased HST and reduced social programs.

The Impact is Devastating on Millions of Struggling Canadians, Especially Seniors

The Canadian Anti-Fraud Centre’s 2024 report says people aged 60+ accounted for 40.3% of all reported dollar losses. Imagine, for example, a scammer convinced a struggling, confused low-income senior to e-transfer him $1,000. Most Canadians would recommend considerable jail time for such a thief.

Meanwhile, the failure to follow standard pension practice and distribute any pension fund surplus that is 25% above target means two million low-income seniors are not receiving a deserved $20 billion in total, $10,000 each, on average. This means the self-serving perpetrators of this CPP-surplus-denial scam are responsible for depriving low-income seniors of 20 million times the $1,000 that the example scammer stole. Where is their jail time?

Since 2016, one million low-income seniors have died, never receiving their deserved $10,000 from the CPP’s surplus. Studies show that those in the top quintile of earnings live 13 years longer than those in the bottom quintile. Many of these low-income seniors could have led a longer life with increased quality if they had received their $10,000 from the CPP’s surplus, a 40% increase in income.

Suppressing the news of the CPP’s $500 billion surplus is a national disgrace. On behalf of those 100,000 seniors who will continue dying every year, it needs to be asked. Why are the greedy perpetrators not guilty of genocide?

Who, how and why is explained below. In a country that Canadians think is reasonably democratic, the overwhelming evidence points to cover-up that dwarfs the findings of the Charbonneau Commission, where hundreds of politicians, bureaucrats and consultants colluded to profit handsomely from inflating infrastructure costs in Quebec by 25%.

Women, Income Inequality, and the Fight for Financial Fairness in Canada

Women are disproportionately affected by the outcomes of systems that remain largely shaped by male-dominated leadership.

Approximately two-thirds of low-income seniors are women. During their working years, women earn, on average, about 87 cents for every dollar earned by men, resulting in lower lifetime savings and reduced retirement security. When families separate, women most often assume primary responsibility for childcare, frequently bearing the financial strain that follows. In some cases, support payments are inconsistent or absent, leaving mothers to pursue costly legal remedies—or to manage alone.

At the same time, women remain underrepresented in many of the institutions that influence financial outcomes. Only about 25–30% of senior roles in the financial industry are held by women. In the actuarial profession, women represent roughly one-third of practitioners, with fewer at senior levels. In media leadership, women also account for only about one-quarter to one-third of decision-making positions.

The result is a gap not only in income, but in influence—particularly in areas that shape financial policy, retirement systems, and public awareness.

If you are a woman, your voice is essential in addressing these issues and advocating for fairer outcomes. And if you believe in equity and accountability, I encourage you—regardless of gender—to support efforts that seek meaningful change.

The only senior politician willing to combat this cover-up on behalf of her constituents is a woman, Premier Smith.

A summary of the pros and cons of these recommendations

The benefits summarized in the left column would bring a huge improvement to the lives of millions of struggling Canadians and Canada’s anemic economy.

How Canada Could Rise in the Happiness Rankings

In The World Happiness Report, while Canada has plummeted from a ranking of 25 from 6, Finland consistently ranks first. Finland’s society is built on:

very low levels of corruption,
high trust in government and public institutions,
a strong social safety net,
low income inequality.

These factors create a sense of stability and security that underpins overall well-being.

Younger generations face a wide range of challenges: high housing costs, rising rents, growing income inequality, climate concerns, and increasing financial stress.

Demographic trends also highlight the economic challenges facing younger generations. Since the mid-1970s, Canada’s fertility rate has declined significantly—from about 2.1 children per woman, the level needed to sustain population growth, to roughly 1.25 today. To deprive Canada’s struggling youth of these multi-billion dollar CPP benefits so that the executives in the financial industry can increase their millionaire wealth is criminal. However, legally, the perpetrators of this subtle cover-up probably enjoy complete protection.

Recall that Canada’s under-25 population is so unhappy that, in 2026, Canada is ranked 71st in The World Happiness Report for that age group. With 70 nations ranking above us, who must be near us or below us in the ranking? Likely, only nations rife with poverty, suffering, low income and half our longevity.

Imagine how much happier our younger Canadians would be if our politicians told them the truth:

you can expect a likely $100,000 CPP pension in 2026 dollars,
you don’t need to invest anything today towards retirement,
you don’t need to buy life insurance,
you can make triple the money by investing voluntarily with CPP Investments instead of the financial industry,
you don’t need to contribute to any other pension funds.

Currently, they likely have a sense that the system is failing them and older Canadians are thriving at their expense. And there is nothing they can do about it.

To be fair, a big reason for youth unhappiness is unemployment. However, if the CPP followed standard pension practice and released a deserved $200 billion surplus payment, roughly $10,000 to each of 20 million Canadians, the resultant spending would create thousands of jobs. And if young Canadians were told they no longer needed to invest towards retirement, their extra income available today would also stimulate spending and also create many thousands of jobs.

If our legislators were to adopt the CPP legislation described above, Canada could significantly improve its standing in TheWorld Happiness Report rankings. More importantly, it would enhance the day-to-day lives of millions of Canadians, now struggling.

Is there nothing young Canadians can do about it? What about Generation Squeeze, probably Canada’s largest organization dedicated to helping young Canadians. It allegedly:

“cuts through political noise to hold governments accountable to young and future generations. We're a breath of fresh credibility and academic rigour in an era of misinformation.”

Regarding funding, their website states:

“Gen Squeeze research and policy judgments are made independently, and not on the basis of donor or funder support. These judgements are guided by the best available evidence, and the expertise of our network of research alliances, partners and volunteers.”

Professor Paul Kershaw of UBC is the leader. I have repeatedly presented him with the above details. He has provided absolutely zero defence of his inaction regarding such a crucial topic. If he used his considerable pipeline to educate thousands of young Canadians regarding the CPP’s surplus and potential, it might generate a groundswell of protest. Thousands of young Canadians might protest so strongly that our government and media would be forced to pay attention. Such a protest could even “go viral”.

However, Professor Kershaw acts like leaders of numerous other allegedly benevolent organizations across Canada. Generation Squeeze has probably received a considerable annual donation from the financial industry as long as they remain silent regarding the CPP’s surplus and potential. If Professor Kershaw acted appropriately, we could likely bring Canada’s under-25 population from a disgusting ranking of 71 on The World happiness Report back to a reasonable ranking of 6, what Canada, overall, was in 2016.

Professor Kershaw belongs high on The Reverse Order of Canada List. First, he masqueraded as the prime watchdog and advocate for Canada’s struggling youth, thereby making millions of young Canadians conclude that, with all those resources and funding, “He has probably uncovered and advocated against any and all injustice against Canada’s young.” Then, when given overwhelming evidence of a cover-up that is depriving millions of young Canadians of benefits in the hundreds of billions of dollars, he has remained disgracefully silent. It should be noted that, if my research is incorrect, I could face a lawsuit.

A pathetic defence from Finance Minister Freeland

On Sept. 11, 2024, Finance Minister Freeland defended her inaction on this crucial issue. In an email to me, she stated:

“Consequently, the large build-up in the CPP Fund is necessary to pay for the promised level of benefits, in particular to the large baby boom generation.
In addition, it is important to maintain a certain buffer in the CPP Fund to protect against sudden and unexpected negative shocks to the global economy, such as a collapse of oil prices, a financial crisis or the impact of a global pandemic on the world economy. “

Her response is sadly lacking. Firstly, actuaries have already planned for “our large baby boom generation.” Secondly, the pension fund surplus guideline “to protect against sudden and unexpected negative shocks to the global economy” is a 25% surplus. The CPP now has a 200% surplus.

This overzealous caution is absurd. It is akin to a multi-millionaire saying,

“I am only spending $5 for lunch at McDonald’s because my multimillion-dollar portfolio could plummet in value tomorrow. And my will says that my children and grandchildren, now going to food banks, will receive nothing until ten years after I die.”

Why aren’t these benefits reaching millions of struggling Canadians?

Three powerful, influential industries or professions would lose billions of dollars and lucrative employment if the news of the CPP’s surplus becomes known. The evidence, collected over ten years, that they have orchestrated a massive cover-up, can be found by clicking:

The Financial Industry

The Actuarial Profession

The Media Industry

If the recommendations below were implemented, millions of floundering Canadians would enjoy a considerable improvement in their quality of life. However, the overwhelming evidence indicates the selfish interests of Canada’s wealthiest 1% have been favoured over the interests of the other 99%. On this crucial issue, democracy, freedom of press and actuarial science have all been replaced with a deception that is having a profound negative impact on millions of Canadians and our sputtering economy.

The issue goes far beyond pensions. It affects:

the disposable income available to younger Canadians,
the financial security of seniors,
the strength of Canada’s economy.
Albertans’ desire to separate from Canada.

My interest in the CPP is also partly personal. The MacNaughton family has long been connected to the history of the Canada Pension Plan.

Because CPP Investments has been the best pension fund investor in the world for 15 years, our CPP fund now has a $500 billion surplus as shown here. Fifteen years ago, our Chief Actuary specified a 6% return is necessary for fund stability, resulting in a $366 fund value today. Because CPP Investments has averaged a 10% return for 15 years, our comparable CPP Fund’s value is $725 billion. With an ongoing 10% return, which is likely, the CPP fund only needs roughly $245 billion in the fund to meet all pension commitments. This means our CPP fund now has a $500 billion surplus, 200% above what is needed.

How likely is an ongoing 10% return? Because CPP Investments:

has roughly 2,000 employees with an average income of $575,000 each, with most holding a MBA degree,
has hundreds of employees searching worldwide for profitable private equity investments,
has the resources to purchase a majority share in most small to medium companies, then controlling management using proven expertise,
can also invest in profitable real estate and infrastructure,
can also invest in public equities and fixed income, essentially the only investment options for the average Canadian, aside from a home…

…CPP Investments will likely continue achieving their outstanding 10% return of the last 15 years.

My father’s cousin, Charles MacNaughton, served as Treasurer of Ontario from 1958 to 1962. Representing Canada’s largest province at the time, he was substantially involved in the discussions that shaped the framework of the CPP in its early years.

His son, John MacNaughton—my second cousin—later played a major role in transforming how the CPP invests its funds. After the landmark pension reforms of 1997, John became the first President and CEO of the Canada Pension Plan Investment Board, now known as CPP Investments. Before those reforms, CPP contributions were invested mainly in fixed-income securities. Under his leadership, CPP Investments began investing globally in public equity, private equity, infrastructure, real estate, and more. Over the past fifteen years, this strategy has produced the strongest investment results of all the pension funds in the world.

The purpose of this website is simple: to present the evidence clearly and allow Canadians to judge for themselves.

A big discrepancy in income

With CPP reform, 99% of Canadians would win but Canada’s financial industry would lose

Canada’s financial industry corners 47% of all corporate profit in Canada but only contributes 7.4% to our GDP. For comparison, the US financial industry only collects 25-30% of all corporate profit. Europe’s average is 20-30%.

The Canadian financial industry is awash in cash. In December 2025, the Globe and Mail reported that Canada’s big banks distributed $27.3 billion in bonuses. An estimated 15,000 bank employees received $1.8 million each on top of their salaries.