The ORPP is over before it really started, say advisors, betting the new federal government will seek to roll the provincial plan into an expanded CPP
Now that Justin Trudeau’s Liberal Party has swept to power with a massive majority, advisor speculation has already begun to swirl on whether Kathleen Wynne will move to piggyback Ontario’s proposed pension plan onto the CPP infrastructure.
“I’m a firm believer that there will be an expansion of CPP under the Liberals [federal],” said Toronto-area financial planner Jason Pereira. “I think the creation of the ORPP was a pressure tactic and now that there’s a new government I think the Ontario plan will disappear.”
That’s one reading of Kathleen Wynne’s comments just before Monday’s decisive election win by her federal counterpart.
“If we have a partner in Justin Trudeau to sit down and work out what they’re looking at as an enhancement to CPP that was always my starting point,” Wynne said during campaign stops across Ontario. “That was the solution. A couple of years ago, that’s what we were looking at. We were looking at finance ministers across the country who agreed that they’re needed to be a change to the Canada Pension Plan.”
Clearly Stephen Harper wasn’t going to accommodate the Ontario Liberals but now that he’ll soon be out of office, the gears of change likely will result in a deal being made between the federal government and the provinces and territories saving Canadians millions in duplication costs.
“You have to look at the beauty of a national pension plan. It puts every province on an equal footing when it comes to income security,” said Pereira. “Well, if you suddenly have a bunch of different provinces with different social security nets, no one’s on an equal footing any more. If someone lives in a border town, are they going to choose to live on one side of the line or the other based on what they’re going to get in retirement? You don’t want that kind of brokering going on.”
In Pereira’s estimation the common sense approach to the Canadian pension conundrum appears ready to move ahead.
“Also, let’s consider the massive amount of administration duplication and waste that would occur if there were a CPP, Quebec’s always going to have their own, and nine other provincial plans plus three territorial plans. How much money could be going into people’s pockets would be wasted by that amount of duplication?”
“I’m a firm believer that there will be an expansion of CPP under the Liberals [federal],” said Toronto-area financial planner Jason Pereira. “I think the creation of the ORPP was a pressure tactic and now that there’s a new government I think the Ontario plan will disappear.”
That’s one reading of Kathleen Wynne’s comments just before Monday’s decisive election win by her federal counterpart.
“If we have a partner in Justin Trudeau to sit down and work out what they’re looking at as an enhancement to CPP that was always my starting point,” Wynne said during campaign stops across Ontario. “That was the solution. A couple of years ago, that’s what we were looking at. We were looking at finance ministers across the country who agreed that they’re needed to be a change to the Canada Pension Plan.”
Clearly Stephen Harper wasn’t going to accommodate the Ontario Liberals but now that he’ll soon be out of office, the gears of change likely will result in a deal being made between the federal government and the provinces and territories saving Canadians millions in duplication costs.
“You have to look at the beauty of a national pension plan. It puts every province on an equal footing when it comes to income security,” said Pereira. “Well, if you suddenly have a bunch of different provinces with different social security nets, no one’s on an equal footing any more. If someone lives in a border town, are they going to choose to live on one side of the line or the other based on what they’re going to get in retirement? You don’t want that kind of brokering going on.”
In Pereira’s estimation the common sense approach to the Canadian pension conundrum appears ready to move ahead.
“Also, let’s consider the massive amount of administration duplication and waste that would occur if there were a CPP, Quebec’s always going to have their own, and nine other provincial plans plus three territorial plans. How much money could be going into people’s pockets would be wasted by that amount of duplication?”
