ONTARIO RETIREMENT PENSION PLAN - PART ONE
There has
been a lot of discussion at local and provincial chambers about the proposed
Ontario Retirement Pension Plan (ORPP) introduced by the Ontario government in
December 2014, with plans to establish it in 2017. Both employers and employees
will be required to contribute 1.9 percent of wages to a maximum of $90,000
unless they have a “comparable plan” in place. A “comparable plan” has not been
defined. This is concern for some of the Chamber’s membership, especially those
involved with financial planning or members who are already contributing to a
workplace savings plan. Contributions by the employer and employee would be
mandatory and would be in addition to the Canadian Pension Plan (CPP) premiums.
The government
will also introduce legislation on Pooled Registered Pension Plans (PRPPs) in
2014. These are a new form of tax-assisted individual retirement plans for
workers without employer-sponsored pension plans.
The Ontario
Chamber of Commerce (OCC) conducted a survey and found that 72 percent of
members feel that pension reform should be a provincial priority and 86 percent
of members supported PRPPs that would be managed by regulated financial service
providers. Only 23 percent said they could afford additional employers
premiums.
If you would
like additional information, the OCC and the Certified General Accountants of
Ontario (CGA Ontario) partnered to consult with employers on these proposals. Read the report on this consultation that will provide you with additional
information.
The Ontario
Government has a document available on-line entitled Ontario Retirement Plan:Key Design Questions.
The Aurora
Chamber is concerned about the impact the ORPP could have on small business.
What do you think?
CHAMBER CONNECTION MAGAZINE
Watch for a
big change coming with the spring 2015 issue. We would really appreciate your
feedback. Some adverting is still available in this issue. Please contact Lorie
Butkus-Hill at 905-727-7262 Ext. 22 or l.butkushill@aurorachamber.on.ca
for amazing Annual Value Package deals.
THE CYCLE OF CHANGE
As a
membership association, the Chamber is always looking for new ways to provide
you, the members with value-added services and supports. Plans are being made
to increase the educational opportunities to help you become an even better
employee or employer. For example, late last year we met with a human resources
firm that will be offering workshops this spring and fall to cover topics such as
employee retention, conflict resolution, employment laws related to hiring and
releasing staff, Ontario mandatory health and safety training and other
subjects as identified by members. Do you have a topic related to human
resources that you would like to learn more about? Let us know and we will try
our best to fit them in.
The Chamber
recently consulted with a small group of members to ask for their input and advice
and to brainstorm ideas. The Chamber has been sending reports back to this
group and will send the final report to all members in early March with a request
for your input. We will listen and react to as many ideas as we can over the
next few years. This is important information for the Chamber board and staff
as we plan for the next few years and well into the future. We need your help!
Judy Marshall, CEO
Aurora Chamber of Commerce
905-727-7262 Ext. 33