Ontario’s premier offered advisors some hope that the provinces’ controversial pension plan will be dropped
Advisors will be watching the federal election with bated breath after Ontario Premier Kathleen Wynne suggested her government would drop the idea of a provincial pension plan if Liberal Leader Justin Trudeau becomes the next prime minister.
“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, that was the solution,” she said.
Trudeau is campaigning on a promise to expand the CPP, as well as returning the age of eligibility for old age security (OAS) to 65 from 67.
Since its announcement the ORPP has been met with scorn by advisors and the industry, with the biggest bone of contention surrounding the government's definition of a “comparable” plan.
But if Trudeau wins the Oct. 19 election and holds true on his campaign promise to improve the CPP, Wynne said that would address her concerns about people without a workplace pension plan not having enough money to live on when they retire.
Trudeau said he’d begin talks with the provinces on improving the CPP within three months of taking office.
The NDP is also campaigning on a promise to enhance the CPP, with leader Tom Mulcair saying he’d convene a First Ministers’ meeting on improving the pension plan within six months of forming government. The NDP would also return the age for OAS eligibility to 65.
The pension plan is scheduled to begin on Jan. 1, 2017 and will require mandatory contributions of 1.9% of pay from employers and a matching amount from workers — up to $1,643 a year — at any company that does not offer a pension.
“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, that was the solution,” she said.
Trudeau is campaigning on a promise to expand the CPP, as well as returning the age of eligibility for old age security (OAS) to 65 from 67.
Since its announcement the ORPP has been met with scorn by advisors and the industry, with the biggest bone of contention surrounding the government's definition of a “comparable” plan.
But if Trudeau wins the Oct. 19 election and holds true on his campaign promise to improve the CPP, Wynne said that would address her concerns about people without a workplace pension plan not having enough money to live on when they retire.
Trudeau said he’d begin talks with the provinces on improving the CPP within three months of taking office.
The NDP is also campaigning on a promise to enhance the CPP, with leader Tom Mulcair saying he’d convene a First Ministers’ meeting on improving the pension plan within six months of forming government. The NDP would also return the age for OAS eligibility to 65.
The pension plan is scheduled to begin on Jan. 1, 2017 and will require mandatory contributions of 1.9% of pay from employers and a matching amount from workers — up to $1,643 a year — at any company that does not offer a pension.
