Proposed changes could result in thousands of dollars in extra contributions from working Canadians every year.
ontario pension plan
Despite its reputation, the cost of the CPP is actually above the average for comparable plans based in Ontario.
The Ontario government claims the ORPP is necessary because we aren’t saving enough for retirement, but a number of recent studies show there is no retirement savings crisis in Canada.
As the Ontario government moves ahead with plans for a new mandatory provincial pension program in January 2017, early signs suggest the program will be largely modelled after the Canada Pension Plan. Ontarians, however, would benefit from a broader debate that looks beyond their borders.
Compulsory Government Pensions vs. Private Savings: The Effect of Previous Expansion to the Canada Pension Plan
The Ontario Liberals recently introduced legislation to create a mandatory government pension plan modelled after the Canada Pension Plan.
We’ve seen this script before. Higher spending. Tax increases. Persistent deficits. Growing debt. Warnings from credit rating agencies. A government unwilling to make the tough choices to turn things around.
The Ontario government's proposal to supplement the Canada Pension Plan with its own compulsory pension plan is based on a series of faulty assumptions.