ONTARIO PENSION COMPARABILITY CHANGES “A STEP IN THE RIGHT DIRECTION,” ACCORDING TO THE QUINTE REGION CHAMBERS OF COMMERCE AND THE ONTARIO CHAMBER OF COMMERCE
The Government of Ontario has announced that it will expand the comparability rules under the proposed Ontario Retirement Pension Plan (ORPP). However, business owners remain concerned about the introduction of a new pension plan and the impact it would have on the cost of doing business. The Quinte Region Chambers of Commerce are encouraged by the government’s decision to expand the definition of comparability under the ORPP to include some Defined Contribution (DC) plans. With this change, employers that already provide certain DC pension plans for their employees may be exempt from contributing to the ORPP. The Chambers are also encouraged by a longer phase-in period which will help many Ontario businesses transition into the plan. “Today’s announcement, albeit a small one, is a step in the right direction” said Belleville Chamber of Commerce CEO, Bill Saunders. “However, we remain very concerned that the ORPP even with these small changes will have a negative impact on the ability of our business community to remain competitive.”
In June, the Quinte Region Chambers of Commerce, the Ontario Chamber of Commerce (OCC), and a coalition of over 150 businesses, sector associations, chambers of commerce, and boards of trade came together to urge the government to expand its definition of pension plan comparability to include capital accumulation plans, including, but not limited to, Defined Contribution plans. “Despite today’s announcement, we remain deeply concerned about the cumulative burden facing Ontario employers,” said Suzanne Andrews, manager at the Quinte West Chamber of Commerce. “Rising electricity prices, the introduction of a cap and trade system, and the ORPP will further add to the cost of doing business in Ontario.”
The Chambers warn that in its current form, the ORPP will raise costs for the majority of businesses who operate in the province, including those employers that offer non-comparable plans like Group RRSPs. Recent OCC survey data indicates that if faced with mandatory increased contributions under the ORPP, 44 percent of businesses would reduce their current payroll or hire fewer employees in the future. “We, along with the Ontario Chamber of Commerce, have asked the government to conduct and publicly release the results of an economic impact analysis of their proposed pension plan.” said Michael McLeod, manager of the Prince Edward County Chamber of Tourism and Commerce. Following considerable advocacy efforts by a coalition of businesses led by the Ontario Chamber of Commerce, the government committed to releasing a cost-benefit analysis of the ORPP before the end of the year. “We will continue to work with government in order to ensure they have a full appreciation of the potential impacts of the ORPP.” said McLeod.
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Media Contacts:
Michael McLeod
Prince Edward County Chamber of Tourism and Commerce
613-476-2421
manager@pecchamber.com
Bill Saunders
Belleville and District Chamber of Commerce
613-962-4597
bill@bellevillechamber.ca
Suzanne Andrews
Quinte West Chamber of Commerce
613-392-7635
manager@quintewestchamber.ca
Rachel Strong
Senior Communications Advisor
Ontario Chamber of Commerce
416-482-5222 ext. 2470
rachelstrong@occ.ca
