Businesses scared of ORPP’s economic impact
More clarity is needed says coalition.
BY Staff | September 23, 2015
The Ontario Chamber of Commerce (OCC) and a coalition of major Ontario employers are calling on the provincial government to outline to the employer community the details of the Ontario Retirement Pension Plan (ORPP).
“Ontario’s employer community is asking for greater clarity, about the proposed pension plan so that it does not have a direct, negative impact on jobs and the economy,” says OCC president and CEO Allan O’Dette.
In a letter addressed to Premier Kathleen Wynne, a coalition of more than 150 organizations laid out five specific questions that reflect the collective concerns of Ontario employers.
The primary concern of the employer community remains with the ORPP’s potential economic impact.
This joint letter followed the government’s recent revision to the proposed plan’s comparability rules under the ORPP, which now include DC pension plans with a combined contribution rate of 8% and where the employer contributes at least 4%.
Questions the OCC says that need to be addressed include:
- How will the ORPP impact Ontario’s GDP, jobs, and investment?
- What assumptions has the Government made to arrive at its revised definition of comparability?
- How will the government ensure that the ORPP is a cost-effective plan?
- How will pooled registered pension plans (PRPPs) be implemented while preserving their advantages for employers?
- How many current workplace pension plans are now considered comparable and how will employers verify the comparability of their plan?
“Government is moving ahead with a brisk timeline and some employers will begin making ORPP contributions in less than 18 months. With the potential implementation quickly approaching, Ontario’s business community is looking for more specific answers to some very legitimate questions,” O’Dette adds. “It is our hope that these questions will give government an opportunity to provide further clarity to Ontario’s business community.”
The coalition is comprised of employers of all sizes, including IBM, Union Gas, Magna International, ArcelorMittal Dofasco, Maple Leaf Foods, and Ford. It also includes companies across a diverse range of sectors, including construction, insurance, manufacturing, and mining.
Read the letter on the OCC’s website.