News from the Office of Ontario Finance Minister Charles Sousa
July 30th, 2014 – Ontario is moving ahead with a first-of-its-kind mandatory provincial pension plan that would build on the strengths of the Canada Pension Plan (CPP) and support long-term economic growth.
Ontario Finance Minister Charles Sousa
In light of the federal government’s ongoing refusal to enhance CPP, the Ontario Retirement Pension Plan would take a balanced approach to support workers in the province. It would especially help middle-income earners without workplace pension coverage and would be cost-effective, responsible and designed to meet the needs of a 21st century workforce.
The ORPP would:
- Provide a predictable stream of income that is indexed to inflation and paid for life in retirement.
- Be mandatory for the more than three million Ontarians without a workplace pension plan, and require equal contributions from employees and employers.
- Operate at arm’s length from government and be responsible for managing investments associated with annual contributions of approximately $3.5 billion.
- Support long-term economic growth as pension payments from the ORPP would help people maintain their standard of living in retirement and continue spending.
- Be developed in consultation with pension experts, business, labour, individuals, families and communities across the province in order to ensure that a broad range of perspectives is heard.
Despite federal inaction, Ontario is committed to building a strong and secure retirement income system to help ensure that people in the province are better able to enjoy their retirement years.
Quick Facts
- Despite consensus among provinces and territories to continue talks on an enhancement to the CPP, the federal government unilaterally shut down discussions.
- The CPP pays the average Ontarian only about $6,800 a year in retirement.
- More than two thirds of Ontario workers are without a workplace pension plan.
- Increased life expectancy and low personal savings rates add pressure when preparing for retirement.
- The ORPP is being developed with input from the Technical Advisory Group on Retirement Security, consisting of a group of experts with a range of perspectives, including participants from other provinces.
Quotes
“The federal government has consistently refused to commit to an enhancement of the CPP, so Ontario is leading the way with the ORPP. After a lifetime of hard work and contributing to the economy, Ontarians deserve better than to face lowering standards of living in retirement. Without help, that future is discouraging for many, especially since two-thirds of Ontario workers don’t have access to a workplace pension and many are unable to save enough on their own to provide for a secure retirement.”
Associate Minister of Finance
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Niagara At Large 
A few years ago I called MP Rob NIcholson’s office in NIagara Falls pertaining to the OAS and the formula that has literally put seniors behind the eight ball and into poverty….The answer I got from his office person was; The OAS was not meant to be a sole source of livable income it was only meant to supplement Private work pensions, Savings or Revenue from Investments. then he proceeded in a rather belligerent way to inform, or tell me about his father and his fathers retirement preparations, re. saving etc.
We had spoken on two or three instances about the degrading OAS formula and he was almost nasty as he continued to relate the same father story over and over again. This usually ended in me hanging up in disgust …So I don’t bother contacting MP Nicholson’s office about anything. It was a waste of time then and I am certain it would still be treat with ignorance as well as Arrogance.
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Definitely, there will be a tsunami of elder poverty as more and more people are forced into poverty and the least fortunate to have been put onto social assistance, even for a short period of time, who have been forced to drain all their savings … CPP/OAS/GIS is not enough to live on. If we want seniors to be able to remain in their homes and participate in the community in their so-called “golden years”, people have to be getting a whole lot more than that. The amount given barely covers housing for most seniors, esp. those that own their homes.
Enforced retirement into poverty leads to poorer health of the senior citizen, and decreased likelihood of them being able to afford accessibility supports, home help (as the public health system covers only a minimum of care), among other things, which only results in more costs over time by financing a person’s stay in long term care. If people want to see what happens to the poor elderly, they should visit the lower end nursing homes in their communities and see how many are restrained to wheelchairs, forced into diapers, are understaffed, etc. and then, one must ask “How did these people get here?” Many (though not all of them) could have lived independently in their own homes, if they had the financial resources to fix their homes for accessibility, cover the costs of needed home care, cover the cost of transportation if they’ve stopped driving, etc. The wealthy ones generally do not end up there … they either die at home, in a hospice or in a high priced retirement home, where they maintain some of their own independence.
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MP Rob Nicholson’s office has assisted me quite effectively with a couple of issues in the past, but it’s true that if there is anything which encroaches upon party policy, they will pretty much turn a deaf ear. As for OAS, however, this is really just a handout, but I’m hoping it’s still in place when I “get there”. The OAS Supplement is a remedial measure for those in the poverty income category, but the basic benefit is there for everyone, save some “clawing back” with regards to the affluent. It’s a comfort that it’s available, but certainly cannot be counted on as a sole source of income (with or without CPP) for any decent quality of life in retirement years. One has to do what he or she can to prepare for the future, which is easier said than done during these challenging times.
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