Bill 56, An Act to require the establishment of the Ontario Retirement Pension Plan, has moved one step closer to becoming law.
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.
Both labour and businesses say there are flaws with the Ontario Retirement Pension Plan in its current form.
A number of organizations say some employers and employees shouldn’t have to contribute to the Ontario Retirement Pension Plan (ORPP).
Businesses say the Ontario Retirement Pension Plan (ORPP) could lead to hiring freezes and job losses.
Business groups believe there will be unintended economic consequences if the Ontario Retirement Pension Plan becomes law, but labour organizations say it doesn’t go far enough.
OPTrust is in favour of the Ontario Retirement Pension Plan (ORPP).
The Standing Committee on Social Policy will meet to consider Bill 56, An Act to require the establishment of the Ontario Retirement Pension Plan,later this month.
The current version of the Ontario Retirement Pension Plan (ORPP) is problematical in its benefit design and how it's targeted, Keith Ambachtsheer writes in a KPA Advisory Services advisory. However, he suggests four measures that would make the ORPP better.
The Ontario Retirement Pension Plan is needed because Ontarians' workplace pension plan coverage is low, and they aren't saving enough, according to Associate Minister of Finance Mitzie Hunter.