CARP calls on Federal government to reverse decision on ORPP


July 17, 2015

CARP calls on Federal government to reverse decision to obstruct Ontario Registered Pension Plan

TORONTO, ON: CARP is calling the federal government’s refusal to allow Ontarians to use the CPP payroll deduction system to contribute to Ontario’s provincial pension plan a big disappointment – a decision that should be reversed.

CARP is calling on the federal government to reconsider its refusal to let Ontario access the existing CPP payroll deduction mechanism to collect contributions, administer the ORPP, integrate the ORPP within the RRSP contribution limits, or make the legislative changes that will treat ORPP like the CPP for tax purposes, all of which would help Ontario to establish its provincial pension plan.

Many Ontarians and CARP members alike will be disappointed in the lack of support from the federal government to help establish Ontario’s pension plan – a plan that many, especially those without workplace pensions, were counting on as a real solution to helping them achieve a more secure retirement. According to CARP PollTM, a vast majority (80%) of CARP members said that they support the Ontario Retirement Pension Plan (ORPP) and 70% believe that other provinces should follow suit.

This is a disappointing decision by the Finance Minister. This ensures that the cost of setting up the ORPP will be much greater than necessary. Allowing Ontarians to simply use the existing CPP payroll deduction mechanism is the logical choice. Disagreeing as a matter of policy that the Ontario government should not establish a supplementary pension plan as it was elected to do is one thing; forcing taxpayers to pay extra to administer the plan unnecessarily seems unduly churlish. After all, the CPP payroll deduction mechanism was created and funded by Canadian taxpayers for all to use for our benefit.

This could delay roll-out of the ORPP but will definitely increase costs. It is of course possible for the ORPP to develop its own separate payroll deduction mechanism, as The Teachers’ Pension Fund or HOOPS and OMERS have done, but it is costly and an unnecessary cost.”   Susan Eng, VP Advocacy

CARP has long called for a Universal Pension Plan that is modelled on the CPP, specifying that one of its key features should include the use of existing enrolment and administration mechanism. Without the federal government’s help, the roll-out of the ORPP could be delayed but will definitely increase cost – an unnecessary cost.

CARP is a national, non-partisan, non-profit organization committed to advocating for a New Vision of Aging for Canada, social change that will bring financial security, equitable access to health care and freedom from discrimination. CARP seeks to ensure that the marketplace serves the needs and expectations of our generation and provides value-added benefits, products and services to our members. Through our network of chapters across Canada, CARP is dedicated to building a sense of community and shared values among our members in support of CARP’s mission.

For further information, please contact:

Sarah Park   416.607.2471
Director, Strategic Communications
[email protected]

Michael Nicin   416.607.2479
Director of Policy & Strategic Planning
[email protected]

Anna Sotnykova  416.607.2475
Media & Communications Coordinator
[email protected]

CARP, A New Vision of Aging for Canada
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