On May 25, 2009 the federal, provincial and territorial Ministers of Finance proposed changes intended to modernize the Canada Pension Plan including the following:
- remove the Work Cessation Test so that individuals would be able to take their benefit as early as age 60 without any work interruption or reduction in hours worked or earnings
- increase the percentage of low income years to be dropped from the calculation of "average career earnings"
- require those under 65 who receive a CPP retirement benefit and continue to work, as well as their employers, to make CPP contributions (voluntary for those over 65; mandatory for employers of those over 65 who opt to participate)
- gradually increase the early pension reduction and late pension augmentation actuarial adjustments.
The proposed changes will begin to come into force in 2011 following approval by federal and provincial governments with the majority of changes being phased in gradually. An information paper describing the proposed changes was published.