More clarity is needed says coalition.
The Ontario Chamber of Commerce (OCC) and a coalition of major Ontario employers are calling on the provincial government to outline to the employer community the details of the Ontario Retirement Pension Plan (ORPP).
When Minister of Finance Joe Oliver announced in May that the federal government would consider allowing voluntary contributions to CPP, the financial community was caught by surprise. After all, his predecessor, Jim Flaherty, had publicly stated that the government looked into a voluntary CPP proposal in 2010 but declared it unworkable.
The Government of Ontario announced key details in the design of the Ontario Retirement Pension Plan (ORPP) on Tuesday and reaction to the announcement was both negative and positive.
The time is right to shore up our retirement system, and the Ontario Retirement Pension Plan (ORPP) is a step in the right direction.
The Harper government says it will explore giving people the option to pump more of their earnings into the Canada Pension Plan to boost their retirement savings.
There weren’t many surprises in the 2015 federal budget, which includes changes to TFSA contribution limits and the amount seniors will be required to withdraw from registered retirement income funds (RRIFs).
Capital accumulation plans (CAPs) already help 2.4 million Ontario workers save for a good retirement and can largely solve the under-saving gap. The proposed Ontario Retirement Pension Plan (ORPP) should therefore not be mandatory for employers who already have a well-designed workplace plan in place for their employees—whether a DC pension plan (DCPP), group RRSP or deferred profit sharing plan (DPSP)—especially if those plans already involve employer contributions that are equal to or greater than the 1.9% rate proposed under the ORPP.
Why DC plan sponsors should limit plan member investment options.