<P> The CPP mandates all employed Canadians who are 18 years of age and over to contribute a prescribed portion of their earnings income to a federally administered pension plan . The plan is administered by Employment and Social Development Canada on behalf of employees in all provinces and territories except Quebec, which operates an equivalent plan, the Quebec Pension Plan . Because the Constitutional authority for pensions is shared between the provincial and federal governments, stewardship for the CPP is jointly shared . As a result, major changes to the CPP, including those that alter how benefits are calculated, require the approval of at least 2⁄3 of Canadian provinces representing at least 2⁄3 of the country's population . </P> <P> Provinces may choose to opt out of the Canada Pension Plan (as Quebec did in 1965), but must offer a comparable plan to its residents . In addition, under section 94A of the Canadian Constitution, pensions are a provincial responsibility, so any province may establish an additional / supplementary plan anytime . </P> <P> The Liberal government of Prime Minister Lester B. Pearson in 1965 first established the Canadian Pension Plan . </P> <P> The primary CPP benefit is the monthly retirement pension . Currently, this is equal to 25% of the average earnings on which CPP contributions were made over the entire working life of a contributor from age 18 to 65 in constant dollars . The earnings upon which contributions are made are subject to an annual limit, which, in 2018, is $55,900 . However, under changes being phased in by 2025, the pension benefit will rise to 33.33% of earnings on which contributions were made, and the maximum amount of income covered by the CPP will rise by 14 percent . (From the projected 2025 limit of $69,700 to $79,400 . </P>

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