Count me in cynic camp as well. I pay into CPP, have for years, and will for years, but I am certainly not relying on CPP benefits as part of my financial planning.
My husband pays but will never effectively collect it since his pension will be reduced dollar for dollar once his CPP starts. If I ever collect, it will just be bonus fun money.
As another member was saying, CPP is not social security, it is a pension managed separately from social security (i.e., Government managed) programs.
Here is an excerpt from the latest actuarial report (
http://www.osfi-bsif.gc.ca/eng/oca-bac/ar-ra/cpp-rpc/pages/cpp26.aspx).
"Under the 9.9% legislated contribution rate, the assets are projected to grow rapidly over the next decade as contribution revenue is expected to exceed expenditures over that period. Assets will continue to grow thereafter until the end of the projection period, but at a slower pace, with the ratio of assets to the following year’s expenditures expected to reach a level of 6.0 by 2050.
Thus, despite the projected substantial increase in benefits paid as a result of an aging population, the Plan is expected to be able to meet its obligations throughout the projection period and to remain financially sustainable over the long term. "
Regarding your husband's pension, he probably has bridging between his employer and CPP. That means that he pays CPP now and pays less than his share of his employer pension plan (i.e., he pays his share minus his CPP contributions). When he retires, CPP and his employer will coordinate benefits so that he gets what he is entitled to.
It is basically a convenience and efficiency feature so that your husband does not have to pay his full CPP + his full pension. What he pays for, he will get. There is no cynicism required, only understanding of the underlying pension plans.
I fully intend and expect (both definitions) to collect my share of CPP and Employer Pension when I retire.