41 per cent would be forced to cancel or invest less in current plan
More than one-half (55 per cent) of HR professionals are against the proposed Ontario Retirement Pension Plan (ORPP), according to a survey conducted by the Human Resources Professionals Association (HRPA).
Fifty-eight per cent think the Ontario government should continue negotiating with the federal government to raise the Canada Pension Plan (CPP) and close the retirement gap.
Respondents to the survey questioned the need for an ORPP when current workplace benefit plans already exist. And 75 per cent of HRPA members' organizations currently offer a savings plan to employees — more than one-half of which offer a defined contribution pension plan.
"There does not seem to be a savings gap," said Bill Greenhalgh, CEO of HRPA. "It is clear that a majority of our members' organizations already have adequate benefit plans."
Affordability is another issue, found HRPA. Of those polled, almost one-half cannot afford to pay up to $1,643 per employee, per year; while 41 per cent said it would force them to either cancel or invest less in their current workplace plan.
"The employee benefit plans that companies currently offer will be affected," said Greenhalgh. "Of those surveyed, 44 per cent have 500 employees or more, making it challenging for these companies to maintain their existing plans while also incurring the cost of yet another mandatory savings plan.”