March 28, 2012
Ontario has dealt a blow to Ottawa's pension reform initiatives by slamming the federal government's effort to create pooled registered pension plans. Ottawa has been working on PRPPs for some time, but provinces must pass legislation before the plans can get up and running.
The Ontario government decided to make its position on the matter clear in its 2012 budget Tuesday – and it was unequivocal. The province outlined a number of serious concerns, including the notion that PRPPs might simply replace other forms of retirement savings instead of growing the overall pie.
Ontario has long advocated for an expanded Canada Pension Plan as its preferred option for improving pension coverage, says pension expert Mitch Frazer. Now the province seems to be taking a tougher stance and is insisting on CPP reform in exchange for support for the PRPP program.
"Ontario is clearly drawing a line in sand and saying these PRPPs are not enough," Mitch said.
"I think they're probably just fed up with the federal government not doing anything on CPP [reform] and they're saying you give us CPP and then we'll do PRPPs."
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