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How to Make a Sinking Fund. Thatâs when we learned how to make a sinking fund. A sinking fund is not a complicated financial concept. In fact, itâs one of the simplest financial concepts to understand. Basically, a sinking fund is the act of saving a little money every month for a large future expense.
1 Instead of a pay-as-you-go structure, the CPP is expected to be 20% funded by 2014, such funding ratio to constantly increase thereafter towards 30% by 2075 (that is, the CPP Reserve Fund will equal 30% of the liabilities - or accrued pension obligations). 2  Create the CPP Investment Board (CPPIB). Instead of a pay-as-you-go structure, the CPP is expected to be 20% funded by 2014, such funding ratio to constantly increase thereafter towards 30% by 2075 (that is, the CPP Reserve Fund will equal 30% of the liabilities - or accrued pension obligations). 2  Create the CPP Investment Board (CPPIB).