Brexit and the expanded Canada Pension Plan dominated Canadian headlines this week. Catch up on all the details with our weekly news roundup:
1. In a historic referendum, the people of the United Kingdom voted to leave the European Union on June 23. The final results reveal an incredibly close race: 51.9% (17,410,742) of people voted to leave the European Union while 48.1% (16,141,241) of people voted to remain. The referendum turnout was 71.8%, with more than 30 million people voting. It was the highest turnout in a UK-wide vote since the 1992 general election (BBC). Here are the latest updates:
- The shocking Brexit vote has left Britain’s financial sector reeling, with the British pound falling to its weakest level in over 30 years
- In light of this outcome, Prime Minister David Cameron has promised to resign by October, stating: “I think the country requires fresh leadership to take it in this direction.” (The Globe and Mail)
- In a statement Friday, Prime Minister Justin Trudeau said of Canada: “We respect the choice of the British people and will remain a strong partner of the U.K. and the European Union.” (The Globe and Mail)
- For a complete breakdown of the referendum results by region, click here.
2. On Monday, the majority of Canada’s finance ministers reached an agreement to expand the Canada Pension Plan (CPP), although Quebec and Manitoba have yet to sign the deal. Starting in 2019, the agreement would…
- increase income replacement from one quarter to one third of pensionable earnings—this means that, at maturity, a Canadian with $50,000 in constant earnings throughout their working life would receive a yearly pension benefit of around $16,000 instead of the $12,000 they would currently receive, or $4,000 more per year; and
- increase the maximum amount of income subject to CPP by 14%, which is projected to be equal to roughly $82,700 in 2025 (Department of Finance Canada).
For a comprehensive overview of the CPP expansion, check out this article from Maclean’s.
3. Parliament is officially on summer break as of this past Friday – but the politics don’t stop there! You’ll be sure to see MPs being active in their ridings over the summer and gearing up to make change when they resume in the Fall. The Senate sits until this Thursday, at which point we will know whether Bill C-210 – the bill to change O Canada to gender neutral – will have passed, been amended, or left hanging until the fall.
Brutish Prime Minister David Cameron speaking in 2013 at the Global Investment Conference