A pension catastrophe in the making - OFL Urges MPPs to Vote Down Private Members’ Bill 54
(TORONTO) -- The Ontario Federation of Labour is calling for swift defeat of Private Members’ Bill 54 that purports to be a solution to the pension crisis encountered by millions of Ontarians.
Introduced by Liberal Member for Peterborough, Jeff Leal, and scheduled for debate during this afternoon’s proceedings the bill, if passed, would sidetrack real pension reform by enabling insurance companies and the mutual fund industry to profit at the expense of the very workers who desperately need pension security.
Leal’s plan would require employers with more than 20 employees to provide a retirement savings plan. It would not, however, require employers to contribute to it. Workers would be allowed (or pressured) to opt out of the plan. The bill would not result in any meaningful increases in economies of scale, risk sharing or portability of Ontarian’s retirement savings.
“It is extremely disturbing to note that this seems to have the government’s stamp of approval given that it has moved so quickly to second reading,” says OFL President Sid Ryan. “The Canadian Labour Congress proposals for an enhanced Canada Pension Plan (CPP) should be at the top of the government’s agenda and not bogus proposals that give the financial industry an even bigger slice of workers’ earnings.”
The CPP is the most effective savings vehicle for retirement. Almost every working Canadian is already covered by it – and it is portable no matter where we work or how often we change jobs. It is financially solid. The CPP’s fees are the lowest pension administration fees in the country – lower than private pension plans and much lower than those on RRSPs offered by the financial services industry.
“We have been calling on the government to address this crisis. This bill is not the solution. We want real dialogue on the expansion of the CPP and are urging all MPPs to vote down Bill 54,” says Ryan.
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Introduced by Liberal Member for Peterborough, Jeff Leal, and scheduled for debate during this afternoon’s proceedings the bill, if passed, would sidetrack real pension reform by enabling insurance companies and the mutual fund industry to profit at the expense of the very workers who desperately need pension security.
Leal’s plan would require employers with more than 20 employees to provide a retirement savings plan. It would not, however, require employers to contribute to it. Workers would be allowed (or pressured) to opt out of the plan. The bill would not result in any meaningful increases in economies of scale, risk sharing or portability of Ontarian’s retirement savings.
“It is extremely disturbing to note that this seems to have the government’s stamp of approval given that it has moved so quickly to second reading,” says OFL President Sid Ryan. “The Canadian Labour Congress proposals for an enhanced Canada Pension Plan (CPP) should be at the top of the government’s agenda and not bogus proposals that give the financial industry an even bigger slice of workers’ earnings.”
The CPP is the most effective savings vehicle for retirement. Almost every working Canadian is already covered by it – and it is portable no matter where we work or how often we change jobs. It is financially solid. The CPP’s fees are the lowest pension administration fees in the country – lower than private pension plans and much lower than those on RRSPs offered by the financial services industry.
“We have been calling on the government to address this crisis. This bill is not the solution. We want real dialogue on the expansion of the CPP and are urging all MPPs to vote down Bill 54,” says Ryan.
For More Information:
Patrick (Sid) Ryan, President
p: 416.441.2731 | m: 416.209.0066 | f: 416.441.0722
Toll-free: 1-800-668-9138
Lynn Simmons
OFL Communications
p: 416.443.7665(direct)416.803.8282(mobile)
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