“The Greater Peterborough Chamber of Commerce and Ontario’s employer community know that without greater clarity, the proposed pension plan could have a direct, negative impact on jobs and the economy,” said Stuart Harrison, President & CEO, Peterborough Chamber. “This is why we continue to advocate for a solution that supports business growth. The concerns summarized in today’s letter illustrate that we have not yet found that solution.”
The primary concern of the employer community remains with the ORPP’s potential economic impact. Businesses in the province face increasing costs from a number of sources - rising electricity rates, a new cap and trade system, and some of the highest workplace safety insurance premiums in the country. There is deep concern that the proposed pension plan will further contribute to this cumulative burden. This joint letter followed the government’s recent revision to the proposed plan’s comparability rules under the ORPP, which now include defined contribution (DC) pension plans with a combined contribution rate of 8 percent and where the employer contributes at least 4 percent.
The coalition includes employers of all sizes, in addition to companies across a diverse range of sectors, including construction, insurance, manufacturing, and mining. More than 40 organizations across the Chamber Network have also signed on, in addition to industry and trade associations. Other questions that need to be addressed are:
- How will the ORPP impact Ontario’s GDP, jobs, and investment?
- What assumptions has the Government made to arrive at its revised definition of comparability?
- How will the government ensure that the ORPP is a cost-effective plan?
- How will Pooled Registered Pension Plans (PRPPs) be implemented while preserving their advantages for employers?
“The Peterborough Chamber and Ontario employers will continue to work with the provincial government to find a solution that will meet the needs of Ontario’s business community while addressing the challenges Ontarians face later in life,” adds Harrison.
For a copy of the full letter, visit the OCC website.