Tories promise to ‘repeal and refund’ contributions to Ontario retirement pension plan

Progressive Conservative Leader Patrick Brown vows a PC government would repeal Ontario Retirement Pension Plan and send rebate cheques for contributions.

Thestar.com
March 9, 2016
By Rob Ferguson

Workers and businesses paying into the controversial Ontario Retirement Pension Plan once it begins will get their money back if a Progressive Conservative government wins the 2018 election.

Tory leader Patrick Brown has promised to “repeal and refund” the ORPP plan and monies paid toward it, providing rebate cheques should his party wrest power from Premier Kathleen Wynne’s Liberals.

“I think it’s a bad proposal at the wrong time,” Brown told the Star. “I’m encouraged the government’s recognized that and they’ve pushed it off a year with the negative feedback they’re getting.”

He called proposed pension premiums of up to $1,643 a year from eligible businesses and individuals “a tax.”

The Canadian Federation of Independent Business and about five dozen local chambers of commerce, along with a number of industries, have warned the contributions will kill jobs.

But Finance Minister Charles Sousa maintained Wednesday that the plan will be “going forward” and taking contributions as scheduled in January 2018 - 12 months later than originally planned - unless the federal government and other provinces agree to enhance the Canada Pension Plan.

“Failing that, Ontario’s going to pursue the Ontario Retirement Pension Plan.,” Sousa told reporters.

“This is about providing support for 67 per cent of Ontarians who do not have a workplace pension plan, who are the most vulnerable.”

Brown said any public pension plan improvements should be made nation-wide through the CPP.

“I hope that Kathleen Wynne, who tells us she’s got the best relationship with our new prime minister, Justin Trudeau, could pick up the phone and do it properly.”

However, objections from some provinces to enhancing the CPP in challenging economic times have made consensus on boosting that plan a non-starter for now.

Wynne, who promised the Ontario pension plan during her 2014 campaign, said it’s important because not enough citizens are saving for their retirement, and fewer and fewer workers now enjoy pension plans on the job - particularly people in their 20s and 30s.

“Our goal is for all Ontario employees to be part of the ORPP or a comparable plan by 2020,” associate finance minister Mitzie Hunter told the legislature, noting the plan will be indexed to inflation.

She said it’s “misleading” for Brown to call the pension premiums a tax since they go into a pension investment pool and not to the government.

Brown’s pledge to repeal and refund the pension premiums comes as his party begins developing a platform for the next provincial election in the fall of 2018.

On the weekend, he surprised the party by announcing plans for a carbon tax to discourage the use of fossil fuels that cause global warming. He proposed making it revenue-neutral for the government by giving equivalent tax rebates.

CHUNKY NUMBERS

25 - Percentage of workers aged 25 to 34 who have workplace pension plans.

50 - Percentage of workers aged 45 to 54 who have workplace pension plants.

$1,643 - Maximum annual contribution from workers, matched by employers, for the pension plan. Based on an income of $90,000.