May 02, 2014
The details of the Ontario government’s proposed pension plan, including the new scope for coverage if the plan is adopted, are the topic of discussion across the province. Mitch Frazer, head of Torys’ Pension and Employment Practice, was sought for comment in a Globe and Mail article on the subject. Below is an excerpt of the article.
The new pooled registered savings plan that will supplement the ORPP will be voluntary for companies, and employees, although automatically enrolled, may opt out. Participants’ payroll deductions would be managed by private-sector investment firms.
Lawyer Mitch Frazer, who advises companies on their pension plans, said the new programs will clearly improve retirement savings, but he has not sensed a large demand from employers for a PRPP program.
“I think maybe some will pick it up over time if it is seen as a low-cost benefit they can offer to employees,” he said.
To read the full article, click here.