TORONTO, ON, MARCH 27, 2014: A new report from the Ontario Chamber of Commerce (OCC) and Certified General Accountants of Ontario (CGA Ontario) reveals that Ontario’s employers do not support a made-in-Ontario pension plan. The report, An Employer Perspective on Fixing Ontario’s Pension Problem, identifies Pooled Registered Pension Plans (PRPPs) as employers’ preferred solution to helping Ontarians better prepare for their retirement.
As part of the consultation process, the OCC and CGA Ontario hosted seven employer roundtable discussions across the province. The two organizations, in partnership with Leger Marketing, also surveyed close to 1,000 companies.
The result – employers worry that the current pension system in Ontario is unsustainable. In fact, more than seventy percent of employers surveyed stated that pension reform should be a top government priority.
Employers identified a number of principles that should inform pension reform, including:
- Pension reform should not diminish Ontario’s long-term competitiveness;
- Pension reform should target those that need pension assistance;
- Pension reformshould build upon Ontario’s global expertise in pension investment; and
- Employers support pan-Canadian solutions, not province-specific reforms that further fragment and complicate Canada’s pension landscape.
Eighty-six percent of employers surveyed support introducing PRPPs in Ontario.Far fewer supported enhancing the Canada Pension Plan orthe introduction of an Ontario Pension Plan (OPP). Only 31 percent of the respondentsto our survey who support the CPP enhancement support the idea of a made-in-Ontario solution.
According to Allan O’Dette, President and CEO of the Ontario Chamber of Commerce, “Employers recognize that there are no quick and easy fixes. Ontario’s pension problem requires a long-term perspective and a comprehensive solution that results in seniors having adequate replacement income when they retire. Employers felt that PRPPs were the best solution to helping Ontarians save more.”
Pooled Registered Pension Plans (PRPPs) are workplace pensions managed by regulated financial service providers and specifically targeted to small and medium enterprises.
“Discussions clearly highlighted employers’ concerns,placing emphasis onthe importance of improved financial literacy and retirement planning,”said Doug Brooks, FCGA, CEO, CGA Ontario. “Ontarians of all ages must understand the need to preparefor their retirementto ensure they will beable to maintain their standard of living.”
The report argues that Ontario’s long term economic prosperity depends on the ability of the approaching large cohort of retirees to maintain their purchasing power.
About the Ontario Chamber of Commerce
The Ontario Chamber of Commerce (OCC) is a business network of 160 local chambers of commerce and boards of trade in Ontario. Through this network, we are the voice of 60,000 members that range from small businesses to major corporations and industry associations. Together, our members employ two million people and produce nearly 17 percent of Ontario’s GDP
About the Certified General Accountants of Ontario
CGA Ontario is a self-governing body that grants the exclusive rights to the CGA designation, and controls the professional standards, conduct and discipline of its members and students in the province of Ontario. Certified general accountants (CGAs) are committed to meeting the needs of businesses and organizations with strategic insight, leadership and demonstrated abilities. In Ontario, there are more than 22,500 CGAs and 9,000 students working toward their designation. CGA Ontario is committed to supporting students in achieving a professional accounting designation.
Download the report to learn more.
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