Ontario employers do not support a made-in-Ontario pension plan, according to a report released by the Ontario Chamber of Commerce (OCC) and Certified General Accountants of Ontario (CGA Ontario).
Pooled registered pension plans (PRPPs) are employers' preferred solution to helping Ontarians better prepare for their retirement, said An Employer Perspective on Fixing Ontario's Pension Problem, based on a survey of close to 1,000 companies and roundtable discussions.
Eighty-six per cent of the employers support introducing PRPPs in Ontario. Far fewer support enhancing the Canada Pension Plan (45 per cent) or introducing an Ontario Pension Plan (OPP).
Just one-third (31 per cent) of the respondents who support CPP enhancement support the idea of a made-in-Ontario solution.
Employers worry that the current pension system in Ontario is unsustainable and more than 70 per cent said pension reform should be a top government priority.
The principles that should inform pension reform include:
•Do not diminish Ontario's long-term competitiveness.
•Target those that need pension assistance.
•Build upon Ontario's global expertise in pension investment.
•Support pan-Canadian solutions, not province-specific reforms that further fragment and complicate Canada's pension landscape.
"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,” said Allan O'Dette, president and CEO of the Ontario Chamber of Commerce.
The report argues can be found at Pension report.
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