Ontario Premier Kathleen Wynne said “I won’t be premier when the young people who work here today retire, so it would’ve been easy to kick this decision down the road.”
She made the remarks in her latest presser on the proposed provincial pension plan at a downtown Toronto cafe on Tuesday.
The Ontario Retirement Pension Plan (ORPP) is projected to come on top of the maximum CPP benefit (currently of $13,110 a year), and offer a maximum $12,816 a year for about four million workers in the province who don’t have a workplace pension.
Workers and their employers would pay premiums of 1.9 per cent of a salary, to a maximum of $1,643 a year.
The provincial plan would cover up to $90,000 in pensionable earnings, compared with $54,900 for the CPP. However unlike CPP, the ORPP would offer lump sum payments to spouses if a member dies before retirement or a survivor pension.
Wynne unveiled how the plan would work, last August, and Tuesday said ORPP could become a reality on Jan. 1, 2017, eventually covering more than three million people who don’t have a workplace pension plan.
“Last year we passed legislation establishing the ORPP, and the administation corporation, and we will introduce another bill in the Spring session, and if it’s passed it will set the framework for the plan design.” according to thr premiere
Wynne contends there’s a “generational divide” in retirement incomes because three-quarters of workers between ages 25-and-34 don’t have a pension plan, compared with half of workers aged 45-to-54.
The Ontario Chamber of Commerce claims the idea requires a “herculean” effort on the part of government and large employers to get it implemented on time, and says the current timeline is “very, very aggressive”.