Forum

Wealth Professional forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Wealth Professional | 04 Aug 2015, 09:00 AM Agree 0
New research is suggesting an increase in CPP or ORPP contributions would do little to bolster retirement savings at the same time hit advisors where it hurts. But there may be an even bigger concern, say industry players.
  • Tess | 04 Aug 2015, 06:46 PM Agree 0
    Another concern - A lot of people are not maximizing their RSPs and/or TFSAs because their cashflow is tight. With the new ORPP, it may push some people into debt just to make ends meet and they may carry the debt into retirement.

    The Ontario government needs to hire professionals to manage the pension. With their track record, they will grossly over-pay these administrators and fund managers. While the governments have always been on the mutual fund industry about MERs and fee disclosure, let's see about theirs. I know a manager from one of the large public pensions. He makes $1.5 million a year plus an employer-paid pension of more than 18% (the RSP limit) of his earnings (don't ask me how they get exemption on that).
  • Anonymous | 11 Aug 2015, 02:16 PM Agree 0
    Run the numbers on the Wynne governments comments about the ORPP. They say someone earning $70k/year paying into the plan for 40 years ($2,660/yr) will have an annual pension of $9,970. Lets assume an individual collects this pension for 20 years. The projected growth rate isn't even 1% on the individual's contributions. Factor in inflation and morbidity considerations and one will be lucky to get 50% of their contributions back in retirement. A nice little tax grab, Ms. Wynne.
  • Robert Roby | 11 Aug 2015, 03:27 PM Agree 0
    This is simply another tax grab disguised as another benefit for the tax payer.
  • John | 13 Jan 2016, 03:41 PM Agree 0
    I am terribly confused how no one follows this through the entire process. Adding a payroll tax is only going to force companies to look at saving money in other possible ways. this is generally first in Lay-offs or non-expansion. Next The flow of the actual money. If you think that Employers are going to take a pay cut (ORPP contribution portion) they arn't. Whats going to happen is Employers and business owners are first going to increase their own salaries to take home the same amount after taxes and payroll deductions. Then they will look at their employees. No employees will be upset that they are being deducted their portion of ORPP so they will expect a raise to keep themselves at the same take home wages after taxes and payroll deductions. However employers have already given them essentially a raise by way of ORPP contributions. So that less take home for employees. Now if employers increase employee salries to help counter the ORPP deduction to allow employees the same take home, in most cases there wont be anything left for other raises, increases, bonuses. If in fact an employer isn't in a financial situation to even contribute their portion, they will be forced turn to begin lay-offs and other cost cutting. Its simple Employers will take care of themselves first, then employees. So anyone who doesn't own their own business and thinks this is a great idea is so blind to the fact that its only money coming out of your pockets in the end not any of the business owners. If the money's not there they will likly be fire, or small businesses will no long exist in Ontario.
  • Mark Matsumoto | 17 Feb 2016, 06:46 PM Agree 0
    I am not trying to "poke holes". I would kill it if I could!
    I hate the ORPP. I hate our governments stomping all over our freedom of choice and stealing our money.

    There is nothing good to say about the ORPP. It will hurt all of us. This hurt will increase over time. I do not want this government that was forced on me, to take away my ability to make my own savings and investment decisions.

    Stealing my money to increase wasteful government spending is just not right. They can't even stand up and call it like it is which is just a huge tax increase and the beginning creation of a huge future debt obligation.

    It is to be run like the CPP. The starting tax rate for this Ontario plan will be 1.9% employee and 1.9% employer. It will be based on the CPP which now costs 4.9% employee and 4.9% employer. CPP originally started at about the same rate as the Ontario plan. The CPP is about 20% funded and the rest of the requirements are being taxed away from our children and are disguised as their "pension plan premiums". Their money is not being "invested" but is feeding the cash flow requirements of past promises that were never kept and government mismanagement. It is not a savings plan, but something that looks similar to a legalized ponzi scheme.

    It will take away people's ability to save to move out on their own, to get married, to start a family, to buy a home, to buy things to make their lives a little better, to start their own business or other investments, to make their own choices which in turn causes our country to grow. The Liberals are killing our future.

    The ORPP is a direct tax which will make it more difficult to start a business and more expensive to operate in Ontario. It will add to Ontario's costly "clean electricity at any cost" initiatives and make Ontario less competitive.

    This in turn will reduce the number of companies and jobs in Ontario.
    This will increase the number of poor people so the Liberals will need to steal even more money from us so they can give money to the ever increasing number of poor people. These government payments will hold these poor people down so they are ever more dependent on the governments which are killing the economy and the spirit, ability, ingenuity of the people.

    The smart, strong, brave, hard working, heavily taxed people will leave and take their companies with them because of diminishing opportunities, unmotivated work force and high taxes.

    My friend who has a bunch of employees says that he won't be able to give them a raise, since they are already getting a 4% "raise" because of this new tax.

    I think that the ORPP is a smart, short sighted plan designed to raise cash for the government to increase their spending to increase their popularity among the stupid people of Ontario who continue to vote for them. They don't call the huge tax increase a tax and the people are fooled.

    I hate the ORPP and think it should be killed, not just have holes poked in it.

    PS Will or new editor, Please edit out anything that will get me in trouble. I'm not sure if I'm allowed to call the CPP and ORPP ponzi schemes!
Post a reply