'A better position for Saskatchewan': Kevin Doherty on CPP deal

Kevin Doherty said he believes it is much better to hold off until 2019 before implementing changes to CPP.

CPP contribution formula will increase Jan. 1, 2019 under the new pension deal

Saskatchewan Finance Minister Kevin Doherty. (Stefani Langenegger/CBC)

Canadians are going to see a more significant jump in how much they contribute to the Canada Pension Plan (CPP).

Finance ministers from across Canada came to a majority agreement on changes to CPP. 

Under the new pension deal, the contribution formula will increase on Jan. 1, 2019. An average Canadian worker earning about $55,000 will pay an additional $7 per month in 2019. That would increase to $34 per month by 2023.

Kevin Doherty, Saskatchewan's finance minister, said his government had concerns when there was talk that reforms could come as early as next year.

Doherty said he believes it is much better to hold off until 2019 before implementing changes.

"We've got another additional two years for our economy to come back, to rebound more, to provide more strength here in the economy with a much slower phased in period," he said. "We think that's a better deal."

Things moved quickly, according to Doherty, because Ontario was moving forward on its own proposal.

With seven province's representing two-thirds of the population needed for an agreement, Doherty said it was beneficial for everyone to reach a deal.

"We think that that's a better position than being on the outside looking in when the federal government and enough provinces were on board to do it on a more aggressive manner," he said. "So that's where we ended up. We felt it was a better position for Saskatchewan."

Provincial governments have until July 15 to ratify the deal.