Provincial Pension Plan

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Despite a new Federal Government, Ontario is pushing ahead with a Provincial Pension Plan.

The Premier says it’s necessary peace of mind for the next generation; business groups says it’s another employment tax.

Premier Kathleen Wynne says small businesses will start paying into a Provincial Pension Plan in 2019, medium-sized businesses in 2018, and big businesses with five hundred or more employees will start January 2017.

The plan would start paying benefits in 2022.

Employees would pay 1.9 per cent of their salary to the Provincial Plan, and the employer would also pay 1.9 per cent for each staff member.

The Government says it’s doing this because not enough people are saving for retirement but the Canadian Taxpayers Federation says a lot of people would rather put their money elsewhere.

Many were under the impression that the new Federal Government’s promise to enhance Canada’s Pension Plan would stop Ontario’s plan but the Premier says there is no consensus among provinces.