The majority of Torontonians are in favour of the Ontario Retirement Pension Plan (ORPP), according to a poll.

A Mainstreet/Postmedia finds 59% support the plan while 27% oppose it and 13% weren’t sure.

Read: Ontario demands feds co-operate on ORPP

“Conservative candidates in Toronto may want to be careful when discussing Kathleen Wynne’s pension plan—Torontonians overwhelmingly support her plan over Stephen Harper’s criticisms in all areas of the city,” says Mainstreet president Quito Maggi.

Currently, the ORPP consultation paper says workers already participating in a DB or target benefit multi-employer pension plan wouldn’t be required to participate in the ORPP while those in a DC plan would have to contribute to the ORPP as they’re not considered “comparable.”

Read: CPP enhancement, ORPP could reduce voluntary savings: Report

Last week, Associate Minister of Finance Mitzie Hunter said the details of the plan design is something is continuing to work on and it is “working towards providing those details soon.”

A number of business groups including the Ontario Chamber of Commerce oppose the ORPP. It believes employers who offer non-comparable retirement savings plans might choose to reduce the contributions in non-comparable plans to offset the new costs incurred by the new pension plan.

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Jeff:

What criteria was used by Mainstreet / Post Media to conduct this poll given that The Ontario Government does not know when Benefits will begin to be paid out from the ORPP nor do they know the Annual Pension we will receive when we do final start to receive these Benefits.

I have asked Mitzie Hunter and my local politician and neither can provide this information. Asking Torontians if they support the concept without knowing the Costs and Benefits who are they fooling.

I do support a CPP and ORPP plan as long as all contributions are made into Personal accounts that can not be cashed out til retirement ages. Pooling contributions like the current CPP will not benefit most Ontarians.

Just think how much Pension we could collect from our CPP contributions if it was accumulated in our Personal account, 40 years of employment, 40 years of $1,200 Employee / Employer contributions = $2,400 x40 years = $100,000 of contributions compounded with annual returns for 5% would result in Future value of $300,000 which would support a $25,000 a year Pension payout How many people receive this from CPP now?
Given that the ORPP contribution is 50% higher it would result in an annual payout of $37,500 a year, add with CPP we could be receiving $50,000 a year of Pension, but we all know that won’t happen.

Thursday, August 06 at 1:57 pm | Reply

JayCee:

I am sure you were thinking of the employee who doesnt take any time off although many will and still collect the current maximum. I am also sure that the fund would supply the 2 or three years of Disability Benefits that you and so many others will face during their working careers. As to unemployment because the pace of technical change is so fast that yesterdays giant of new technology called the Smart Phone is today’s scavenger on the sidelines of the industry. They scrounge, hoping to survive with 80 % of their staff laid off. Getting a job in this manufacturing climate in Ontario has been difficult. As to Depression that so many of your fellow workers face, are you sure you won’t succumb to this debilitating disease as well . And yet under the current plan you are allowed to exempt a few years for these kind of issues and collect full benefits from CPP. Also your wages at the beginning of this career saga are unlikely to start at an amount which generates $1200 contributions. The greatest growth is in the contributions made in the first years.

The reality of life doesn’t make your 300,000 fund for more than a few lucky participants. And it doesn’t produce a retirement benefit of 25,000 a year if it is annuitized.

Now what if you are the one who is disabled for 15 years or more. Do you want to transfer the cost of supplementing this pension with GIS on to all taxpayers because the accumulation was only $100,000 or less. This is a workers pension plan in which we try to ensure Canadian workers who participate to the best of their abilities for 40 years have a dignified basic pension. It is not a tontine in which the luckiest reap the greatest rewards.

Those lucky ones were the survivors of the great depression and two world wars mostly men who retired after 1975 on a benefit that was indexed and paid for the rest of their life and in some cases to their surviving spouse. All they had to do was survive those two wars and 25% unemployment and pay for all their Medical and Hospital costs and their spouse and children’s medical bills at a time when there was no pennicillin or vaccines for Polio, Measles, Tuberculosis, and countless other diseases. A time when OAS benefits began at 70 and two income families were an oddity. Ironically enough they also had to survive the Spanish flue which wiped out thousands of young people and children between 1918 and 1921.

Their prize was a dignified retirement pension but there were very few of them. Because they were the healthiest of their generation they needed that pension. They tended to live substantially longer or their spouses did. I could go on but I think this covers most of it.

I prefer a pension which at least allows me to know what my income will be most people do when they take a job. And most workers want to know it when they retire. As to those Australian savings accounts. How are they doing during this second meltdown of Chinese stock markets in the last ten years.

Saturday, August 08 at 2:47 am | Reply

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