Manufacturing group pushes for delay in Ontario Retirement Pension Plan
A group representing manufacturers and exporters wants the Ontario government to halt implementation of its new provincial pension plan until a federal review of the Canada Pension Plan is completed.
The Canadian Manufacturers & Exporters said Tuesday that the costs of administering the Ontario Retirement Pension Plan can be avoided by working with Ottawa on a national approach to retirement income security.
- Bill Morneau says CPP enhancement coming 'this calendar year'
- Ontario pushes back provincial pension plan rollout by at least 1 year
"Manufacturers play a key role in ensuring the strength of the Ontario economy," said Ian Howcroft, Ontario vice-president at CME. "These changes need to make sense for them."
Howcroft said mandatory cost increases put manufacturers at a competitive disadvantage.
"Employers already offering pension plans should be exempt from further increases associated with either an ORPP or a CPP change," he said.
In February, the Ontario government said it was pushing back the rollout dates for the ORPP to give larger businesses more time to enrol.
The new provincial plan would cover some three million Ontarians who don't have workplace pensions.
Workers at large companies (with 500 or more employees) were scheduled to start contributing in January 2017, but contributions now won't begin until 2018.
At the same Ontario made that announcement, federal Finance Minister Bill Morneau said he hopes to introduce an enhancement to the CPP before the end of 2016.