Holdout Manitoba agrees to join Canada pension plan reform

Thu Jul 7, 2016 7:52pm EDT
 
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TORONTO (Reuters) - The Canadian province of Manitoba has given its support to a plan to expand the national pension scheme, the federal finance ministry said in a statement on Thursday.

Canada's federal government and most provinces agreed in principle in June to a compromise deal to expand the plan. The expansion would raise premiums moderately over time to provide higher payouts for pensioners.

The deal was signed by eight provincial finance ministers and federal Finance Minister Bill Morneau, but Manitoba did not.

Reforming the Canada Pension Plan requires the support of the country's federal government plus seven of the 10 provinces, representing two-thirds of the Canadian population.

Quebec, which has its own pension plan, did not sign on in June, but at the time expressed its support for "modest, targeted and gradual enhancements."

(Reporting by Jeffrey Hodgson in Toronto; Editing by Richard Chang)