OPTrust is in favour of the Ontario Retirement Pension Plan (ORPP).
In a C.D. Howe Institute Roundtable speech last week, OPTrust president and CEO Hugh O’Reilly noted his support for an ORPP that is a DB plan and mandatory for those without a comparable workplace pension.
To deliver retirement security and dignity for more people, they need to know they can count on a predictable and reliable stream of income for as long as they live, he added.
Read: What DC plan sponsors need to know about the ORPP
O’Reilly said only a DB plan can do this. “And another voluntary program cannot overcome the challenges of undersaving. They simply don’t work.”
When it comes to administering the ORPP, he doesn’t think the province should have to pay for a new system.
“Ontario should, for a fee, be given access to and permitted to make use of the existing CPP administration platform,” O’Reilly added.
He also thinks the cost of establishing an investment organization for the ORPP can be avoided through the use of the investment expertise of Ontario’s jointly sponsored pension plans.
“Big ideas like the ORPP don’t come around all that often—and when they do it is easy to play the role of critic,” said O’Reilly. “It is easier to voice opposition rather than work through solutions.”
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