(Dec. 10/14) As the Government of Ontario is consulting on the Ontario Retirement Pension Plan (ORPP), Restaurants Canada urges members to share their feedback.
The ORPP would directly affect labour costs, as it doubles the current Canada Pension Plan (CPP) cost for those businesses without a company pension plan. This change will cost the foodservice industry almost $78 million a year.
According to federal government reports, the problems of inadequate retirement income are concentrated among middle- and higher-income earners. For lower-income earners, Canada’s Old Age Security (OAS) and Guaranteed Income Supplement (GIS) cover the majority of their retirement income. In fact, more than 90 per cent of lower-income Canadians will not see a drop in disposable income after retirement. Therefore, the proposed ORPP would cost restaurant employers and employees millions every year with little to no additional benefit.