Re: When Canadians don't trust federal security nets . . . .

[Greg Carr]

On 06/03/2014 6:37 PM, ConɀƦConɀ wrote:
> March 5, 2014 - The Globe and Mail
>
>
> PEI, Manitoba join Ontario on new pension plan
>
> 'This is about allowing people to invest into the future,' PEI Premier
> Robert Ghiz says
>
> Prince Edward Island and Manitoba are signing up to help Ontario develop
> a new pension system, adding steam to the province's push for a major
> reform of retirement security.
>
> "It's about planning for the future. If we don't plan for retirements in
> the future, it's going to put extra strains on our health-care system,
> on our social safety net," PEI Premier Robert Ghiz said in Toronto after
> a meeting with Ontario counterpart Kathleen Wynne. "This is about
> allowing people to invest into the future."
>
> The three provinces are now working together to create a proposed
> pension system to supplement the Canada Pension Plan, with the aim of
> delivering extra benefits to retirees.
>
> An advisory panel made up of pension experts and seniors' advocates is
> currently helping Ontario Finance Minister Charles Sousa work out the
> specifics of the plan. Civil servants from Manitoba and PEI will now
> join this group.
>
> The exact details of the plan will be revealed in the spring, but
> government insiders have hinted that it will be a defined contribution
> plan run as a non-profit organization at arm's length from the
> government. The aim primarily is to help middle-income earners. It is
> likely to be modelled after the National Employment Savings Trust in
> Britain.
>
> Ontario decided to press forward with a provincial pension plan after
> the federal government rejected its call to expand the CPP.
>
> Ottawa contends that, in the current uncertain economy, it would be a
> bad idea to force companies and employees to pay more into the national
> pension system. Such a measure would make the country less competitive
> and make it hard on businesses, critics of the pension-enhancement idea
> say.
>
> Federal Minister of State (Finance) Kevin Sorenson slammed Manitoba and
> PEI for showing interest in Ontario's plan.
>
> "Today's announcement means that even more Canadian businesses will be
> disadvantaged with higher payroll taxes that will kill jobs and deter
> investment. Employees simply can't afford a smaller paycheque in this
> fragile economy," he said in a written statement issued by his office.
>
> He also called on Ontario to allow for private Pooled Registered Pension
> Plans instead. The province has previously said it does plan to allow
> PRPPs, but Mr. Sousa has not laid out any timeline for implementing them.
>
> Ms. Wynne has tried to frame the pension plan as an investment rather
> than as a tax.
>
> "Many middle-income earners are not saving enough to retire, and seniors
> who were ready to retire are finding themselves going back to work
> because they can't live on their current plans. Fewer than 35 per cent
> of Ontario workers have a workplace-based pension plan," she said.
>
> "It doesn't matter whether you live in Summerside, PEI, or Steinbach,
> Manitoba, or Waterloo, Ontario, it's clear that you need to have an
> opportunity for a secure retirement."
>
> The Ontario government is planning to bring forward legislation to
> create the pension plan this spring. Because Ms. Wynne's Liberals
> control only a minority of seats in the legislature, it will need the
> help of at least one other party to pass it into law.
>
> The Progressive Conservatives are opposed to the pension plan. The NDP
> supports it, but has not yet committed to voting in favour of it.
>
> It is not clear whether other provinces will join Ontario's push. Quebec
> already has its own pension plan, separate from CPP, and Alberta is
> sitting on the fence, waiting to see the outcome of pension talks before
> making any decision.
>
> British Columbia is waiting for Ontario to table a concrete plan, and
> will take a looks at it when it does, the province's Finance Minister,
> Mike de Jong, said in a statement.
>
> "B.C. recognizes the need for the federal and provincial governments to
> find effective solutions to the under-savings problem faced by current
> workers and thereby address the shortfall in retirement income that it
> is expected to create for future generations of Canadians," he said
> Wednesday. "B.C. acknowledges the commitment of the Ontario government
> in continuing to look for answers to the under-saving and pension
> coverage problems facing many Canadians and looks forward to examining
> any options it, or other jurisdictions develops to address these issues."
>
> Mr. de Jong also expressed support for PRPPs.
>
> The Nova Scotia government has said it is looking to consult with
> business and citizens before deciding what it will do on the pension front.
>
> New Brunswick, Newfoundland and Labrador, and Saskatchewan did not
> respond to requests for comment.
>
> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>
>
> Ninety eight percent of the adults in this country are decent,
> hardworking, honest Canadians.
> It's the other lousy two percent that get all the publicity. But then,
> we elected them.
>
>
> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>
75% of Cdns don't contribute to RRSPs despite the tax savings involved.

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