Ontario will go ahead with its plan to create a pension for its residents now that the latest attempt to enhance the Canada Pension Plan (CPP) has failed.

“Given today’s unfortunate stall tactic by the federal government, we will move forward to implement a made-in-Ontario alternative to protect Ontario workers in their retirement,” said Finance Minister Charles Sousa.

He expressed disappointment and said the federal government stood in the way of a CPP enhancement.

Sousa said that action must be taken now so that today’s workers have a more secure retirement in the future.

The provincial government didn’t reveal any details of what the plan would look like, but it’s expected to provide more information in the spring.

“Doing nothing is not a solution to this problem and will not give Ontarians the security they need to retire,” he explained. “We have to act, and that’s what Ontario will do.”

Ontario said in October that it would move ahead with its own solution, should the provinces and the federal government fail to reach an agreement on CPP expansion.

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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Mike Murphy:

Perhaps all the provinces should get on board with Ontario and join their plan. If they did they might even be able to take over control of the CPP from Ottawa and make the changes they want. Nothing says that the provinces have to allow the Feds to handle any national plan. In fact all provinces make their own Pension Rules and Pensions are not the exclusive domain of the Federal Government.

Mike

Tuesday, December 17 at 12:12 pm | Reply

Charles Spina:

Full marks for Mr. Sousa and Ms. Wynne.

In the face of an obvious-I dare say, universal-crisis, requiring joint action that only Ottawa can sponsor, Ottawa decides to dig in its heels. In doing so, it relinquishes the high ground to Ontario.

If Ottawa is so worried about the economic impact of additional “payroll taxes” (Which they aren’t. Bermuda has payroll taxes; we have contributory pension plans. There’s a difference), why not eliminate the problem.

Make our pension system a truly integrated C/V (compulsory/voluntary) one by (1) raising the tax-assisted contribution ceiling and incorporating CPP contributions into the PA, (2) raising the PE exemption, (3) rebating corp. income tax otherwise payable equal to a percentage of incremental employer contributions for the first two years, and (4) strenghtening CPPIB risk management policies and procedures to ensure that the likes of its disgraceful 2008 equity hit never happens again.

Tuesday, December 17 at 1:30 pm | Reply

joe mottishaw:

Charles Sousa, Ontario Finance Minister must think he’s smarter than all the business analysts in Pension Reform. Adding more costs to the CPP from an employers perspective, is just another taxation that will kill business growth. Ontario will quickly become a HAVE Not Province and slow down their economy. Another Bureaucrat gone wild.

Tuesday, December 17 at 1:44 pm | Reply

Bruce Bennett:

Of course like all other ponzi schemes, Unemployment will go up, labour cost will go up. And those that don’t want to be responsible for themselves will go up. Yup just like Detroit only it will be the entire province going to bankruptcy

Tuesday, December 17 at 2:13 pm | Reply

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