The Ontario Chamber of Commerce is challenging the provincial government, potentially leaving advisors in limbo.
The Ontario Chamber of Commerce is challenging the provincial government over the Ontario Retirement Pension Plan (ORPP), potentially leaving advisors in limbo.
The Chamber and its 160-strong network across the province are urging the government to defer legislation that will pave the way for the ORPP.
With the government introducing the legislation today, the outpouring of employer’s dissatisfaction with the new scheme could have ramifications for advisors in wait and see mode over acceptance towards the new plan.
The business group wants the province to answer questions about the impact the plan could have on the province's economic competitiveness. Businesses are concerned that the proposed pension plan will lead to job losses in the province.
The ORPP, which aims to supplement the Canada Pension Plan (CPP), will require employers to match employee pension contributions, increasing the cost of doing business. For example, in the case of a business that employs 10 people who earn $45,000 each, the employer will be obligated to pay almost $8,000 per year in additional pension contributions.
According to a recent survey conducted by the Chamber, only 23 percent of the nearly 1,000 responding businesses could afford the costs associated with increased employer pension contributions.
"The retirement income challenge is a real one," said Allan O'Dette, President & CEO of the Ontario Chamber of Commerce. "However, we need to ensure that any changes to the pension system are made with a full understanding of the impact they will have on Ontario's business climate. We are not satisfied that these questions have been fully answered."
The Chamber and its 160-strong network across the province are urging the government to defer legislation that will pave the way for the ORPP.
With the government introducing the legislation today, the outpouring of employer’s dissatisfaction with the new scheme could have ramifications for advisors in wait and see mode over acceptance towards the new plan.
The business group wants the province to answer questions about the impact the plan could have on the province's economic competitiveness. Businesses are concerned that the proposed pension plan will lead to job losses in the province.
The ORPP, which aims to supplement the Canada Pension Plan (CPP), will require employers to match employee pension contributions, increasing the cost of doing business. For example, in the case of a business that employs 10 people who earn $45,000 each, the employer will be obligated to pay almost $8,000 per year in additional pension contributions.
According to a recent survey conducted by the Chamber, only 23 percent of the nearly 1,000 responding businesses could afford the costs associated with increased employer pension contributions.
"The retirement income challenge is a real one," said Allan O'Dette, President & CEO of the Ontario Chamber of Commerce. "However, we need to ensure that any changes to the pension system are made with a full understanding of the impact they will have on Ontario's business climate. We are not satisfied that these questions have been fully answered."
