A slight majority of HR professionals aren’t in favour of the proposed Ontario Retirement Pension Plan (ORPP), finds a Human Resources Professionals Association (HRPA) survey.
Fifty-five percent of HRPA members surveyed are against the ORPP, while 58% think the province should continue negotiating with the federal government to expand the Canada Pension Plan.
“There does not seem to be a savings gap,” says Bill Greenhalgh, CEO of HRPA. “It is clear that a majority of our members’ organizations already have adequate benefits plans.”
Read: Will employers scrap DC plans because of the ORPP?
Respondents to the survey question the need for an ORPP when current workplace benefits plans already exist. Seventy-five percent of HRPA members’ organizations currently offer a savings plan to their employees, more than half of which offer a DC plan.
Almost half say they can’t afford to pay up to $1,643 per employee annually, while 41% say it would force them to either cancel or invest less in their current workplace plan.
“The employee benefits plans that companies currently offer will be affected,” says Greenhalgh. “Of those surveyed, 44% have 500 employees or more, making it challenging for these companies to maintain their existing plans while also incurring the cost of yet another mandatory savings plan.”
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