Business and labour groups tussle over Ontario pension plan

Business and labour groups are arguing over whether Ontario’s proposed provincial pension plan will be a bane or a boon to the province, reports Benefits Canada.

The Ontario legislature is holding hearings into the proposed ORPP. The Canadian Federation of Independent Business has told legislators that small business owners should have to make extra pension contributions. The CFIB also says employers with defined contribution plans should be exempt from the plan, Benefits Canada reports.

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The Ontario Federation of Labour says all Ontarians should have to contribute to the plan, unless they’re already covered by a defined benefit or similar plan.

The Portfolio Management Association of Canada has also weighed in. In its presentation to the legislature, it also argues that workplaces with defined contribution plans should be exempted. Further, PMAC believes a pooled retirement pension plan would be a better policy. The organization says PRPPs target specific segments of the population while achieving the same policy objectives as the ORPP would.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.