After bearing the brunt of widespread criticism the ORPP finally has a high-profile defender.
Someone is finally speaking up in defence of the beleaguered Ontario Retirement Pension Plan.
“Let me state here that I support an ORPP that is both defined benefit and mandatory for those without comparable workplace pensions,” said OPTrust president and CEO Hugh O’Reilly at a CD Howe Institute roundtable speech last week.
He argued in order to deliver security and dignity in retirement for more people they need to know they can count on a predictable and reliable stream of income for as long as they live.
“Only a defined benefit plan can do this,” said O’Reilly. “And another voluntary program cannot overcome the challenges of undersaving. They simply don’t work.”
The ORPP would see workers contribute 1.9 per cent of their annual income up to $90,000 a year, which employers would match.
“Some may call it a blunt instrument; others may question whether it is necessary or will create new issues down the road,” said O’Keefe. “What is undisputed is that the people of Ontario have recognized that their own retirements are a huge challenge and they are looking for help.”
But the plan has been met with scorn by many industry groups in the province.
“The life and health insurance industry strongly urges the government to reconsider several of the key design elements of the ORPP in order to better promote the retirement income prospects of Ontario workers,” Frank Swedlove President of the CLHIA wrote in the organization’s submission paper to the provincial government. “We believe that it will introduce unnecessary burdens on business, taxpayers and the economy.”
“Let me state here that I support an ORPP that is both defined benefit and mandatory for those without comparable workplace pensions,” said OPTrust president and CEO Hugh O’Reilly at a CD Howe Institute roundtable speech last week.
He argued in order to deliver security and dignity in retirement for more people they need to know they can count on a predictable and reliable stream of income for as long as they live.
“Only a defined benefit plan can do this,” said O’Reilly. “And another voluntary program cannot overcome the challenges of undersaving. They simply don’t work.”
The ORPP would see workers contribute 1.9 per cent of their annual income up to $90,000 a year, which employers would match.
“Some may call it a blunt instrument; others may question whether it is necessary or will create new issues down the road,” said O’Keefe. “What is undisputed is that the people of Ontario have recognized that their own retirements are a huge challenge and they are looking for help.”
But the plan has been met with scorn by many industry groups in the province.
“The life and health insurance industry strongly urges the government to reconsider several of the key design elements of the ORPP in order to better promote the retirement income prospects of Ontario workers,” Frank Swedlove President of the CLHIA wrote in the organization’s submission paper to the provincial government. “We believe that it will introduce unnecessary burdens on business, taxpayers and the economy.”
