Enhanced CPP Must Match or Surpass ORPP

Enhanced CPP Must Match or Surpass ORPP

The renewed dialogue between the Ontario and federal governments on the Canada Pension Plan and the Ontario Retirement Pension Plan is promising news, Unifor says. Ontario Finance Minister Charles Sousa confirmed that, under a new deal, the federal government will facilitate registration, share data and administer ORPP contributions on behalf of Ontario. “The support from Ottawa will eliminate duplication and allow the province to piggyback on the existing infrastructure of the Canada Pension Plan,” said Unifor Ontario Director Katha Fortier. “In addition to a huge cost saving for Ontarians, this should enable a smoother, more efficient rollout of the ORPP.”

As the ORPP is implemented, Ontario will continue a two-track strategy to negotiate Canada Pension Plan reform with the federal and other provincial governments. “We believe an enhanced CPP, as good as or better than the ORPP, is the best choice for Canadians,” said Fortier. “Unifor will continue to press for a universal CPP in line with the ORPP level of benefit.” In order to allow time for negotiation, the province also announced a one-year delay in the remittance of premiums from large companies, moving the deadline from January 2017 to January 2018.

“The truth is some companies do not want to see improvements to the CPP or the creation of the ORPP. We’re concerned the deferral may be viewed as a weakening of government resolve.” said Fortier. Unifor vows to hold the federal and provincial governments to their May deadline to develop CPP options. Further, in the event that a CPP deal cannot be reached, the Ontario government must launch an operational ORPP by its original deadline of January 1, 2020.

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