Halton Hills News

ARTICLE

Date ArticleType
12/12/2014 Press Release
Economic Development Committee attends a small group feedback session on the provincial pension plan

Economic Development Committee attends a small group feedback session on the provincial pension plan

As reported through major news outlets such as the Globe and Mail, http://www.theglobeandmail.com/news/politics/ontario-takes-first-steps-in-setting-up-new-provincial-pension-plan/article21989145/ the Provincial Government has tabled legislation to introduce a provincial pension plan.

Chamber Member Corina Sibley, from HR à la carte, attended a “small group feedback session” regarding this issue on behalf of your Economic Development Committee. The session was hosted by Associate Minister of Finance Mitzie Hunter on November 12th, and was attended by small business owners from across Halton Region.

At the meeting the Ontario Retirement Pension Plan (ORPP) was described as being similar to the CPP. It would require equal contributions from employers and employees of up to 1.9% on earnings up to an annual maximum of $90,000.

Key takeaways, observations and concerns expressed by the attendees at the feedback session included:

1) Questions whether there has been sufficient forecasting of the cost of administering this program.
2) Ensuring there is sufficient education about the savings vehicles already in place, rather than adding another one into the mix. One suggestion was to have financial literacy as an element to the Grade 12 curriculum.
3) Insufficient planning around Ontario workers who get transferred to other provinces or countries, and then retire back in Ontario.
4) Concern that there is no knowledge around the root cause of the $280 billion unused RRSP room in Ontario. Further concern whether the ORPP is the best solution to address the root cause.
5) Questions whether foreign or out of province business owners will take the additional cost into consideration when determining whether to invest in Ontario.

At the presentation the government indicated that enhancement of the CPP by the federal government remains the preferred option, and could render the ORPP unnecessary.

This is an important and complex issue and we will keep our members apprised of policy positions adopted by the Ontario Chamber of Commerce.