Minister of State for Finance Kevin Sorenson says expanding the Canada Pension Plan (CPP) will kill jobs.
In an opinion piece for the Financial Post, he writes that the “Canadian economy cannot afford a dramatic expansion” or a modest enhancement to the CPP.
“We all want a stronger retirement system,” Sorenson writes. “An expansion at this time could mean job cuts, reduced working hours or a drop in wages.”
Instead, he touts the government’s introduction of tax-free savings accounts and pooled registered pension plans (PRPPs).
Sorenson adds that it’s a shame Ontarians who don’t have a workplace pension plan also don’t have access to PRPPs yet. Last week, the province’s Ministry of Finance announced it would seek feedback from all interested parties on how a PRPP framework would be best implemented.
On Tuesday, Quebec passed legislation on its own version of PRPPs, called voluntary retirement savings plans. Alberta and Saskatchewan have also passed PRPP legislation.
Sorenson concludes by saying that, with the economic recovery still fragile, “we don’t believe now is the time to increase costs on workers and employers, actions that would stunt our efforts to encourage job creation and foster economic growth.
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