Established by an Act of Parliament under the government of Prime Minister Lester B. Pearson, the Canada Pension Plan (CPP) has been in operation since January 1, 1966.

Originally, the CPP was intended to disburse benefits if a contributor were to become disabled, or to the family of a deceased contributor. Contemporarily, the CPP remains a contributory, income-based social insurance program.

Together, the CPP and [[Old Age Security]] (OAS) constitute two major components of Canada’s income retirement system.

To date, Quebec remains the only Canadian province to have opted out of the CPP. Alternatively, the Quebec Pension Plan (QPP) serves as the province’s equivalent to the CPP.