Opponents of the Ontario Registered Pension Plan say that it’s just a blanket approach, and one advisor piled on, saying the plan will her hurt small to medium business owner-clients and could cost jobs and force hiring delays.
“They are indeed concerned about the higher costs,” Rona Birenbaum told WP. “Some with small companies are deferring putting a group RRSP into place because of the coming ORPP while others may have to reduce the contributions that they make to existing group RRSPs as a result of the ORPP.”
“This is going to reduce your capacity to save outside of these plans and that’s why advisors need to be aware of the fact that their clients are going to see less money on their regular pay. It could impact the plans they’ve set up.”
Her comments come as a number of organizations and interest groups have spoken out against Premier Kathleen Wynne and the Liberal government’s plan to introduce a controversial mandatory contribution plan in recent weeks.
The Canadian Federation of Independent Business (CFIB) stepped up to deliver a message of their own to the Premier: small business owners shouldn’t be forced to make additional pension contributions.
The Portfolio Management Association of Canada (PMAC) also chimed in, saying they are many flaws in the current layout of the ORPP and president Katie Walmsley, said that there should be more of a cost-benefit associated with the plan to get business owners to digest the new policy.
“The PRPP plan that we see in other provinces carries a more targeted approach and could also help to fill the gap for the self-employed,” she told WP. “The ORPP is a bit of a blanket approach so it’ll be interesting to see what happens after the government (does their due diligence).”