TORONTO, Sept. 23, 2015 /CNW/ - 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). 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.
"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." said Allan O'Dette, President and CEO of the OCC. "The Chamber Network and the broader employer community continue to advocate for a solution that sustains a business climate that fosters growth and job creation."
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 defined contribution (DC) pension plans with a combined contribution rate of 8 percent and where the employer contributes at least 4 percent.
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. More than 40 organizations across the Chamber Network have also signed on, in addition to industry and trade associations. Questions 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," added O'Dette. "It is our hope that these questions will give government an opportunity to provide further clarity to Ontario's business community."
The Ontario Chamber of Commerce has and will continue to work with the provincial government to find a solution that will meet the needs of Ontario's business community while addressing the challenges Ontarians face later in life.
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SOURCE Ontario Chamber of Commerce
For further information: Media Contact: Rachel Strong, Senior Communications Advisor, Ontario Chamber of Commerce, E: firstname.lastname@example.org, T: 416-482-5222 x2470