Original Research

The Canadian Pension Model: Past, Present, and Future

This article documents the invention and rise of the Canadian Pension Model, starting with its intellectual foundations in the 1970s and 1980s and the creation in 1990s of the model’s prototype: the Ontario Teachers’ Pension Plan (OTPP). It follows OTPP’s evolution into a new, innovative type of pension organization, which other Canadian Pension Plans started to adopt. This evolution was the subject of a 2012 feature article in The Economist, which further raised the profile of what is increasingly called the Canadian pension model. This notoriety raises the logical question today of whether the adoption of the model is being matched by actual superior financial performance. This article presents evidence that is indeed the case. As t the future, wider adoption of the model would help generate the retirement income needed to sustain aging societies around the world.

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