(Feb. 8/16) Pension experts don’t like it, Restaurants Canada argued against it, and Premier Wynne said it wasn’t her preferred route – but the costly Ontario Retirement Pension Plan is moving full steam ahead.
The ORPP will add 1.9% to your labour costs, and take a 1.9% bite out of your employees’ paycheques. Businesses with 500 or more employees will begin making contributions in 2017, with smaller businesses being phased in over the following two years.
Premier Wynne said early in the process that she would prefer to work with the federal government on pension reform. Restaurants Canada repeatedly told the province that the ORPP will hit young, first-time workers the hardest, and make little difference in their retirement earnings. We proposed an exemption for youth under the age of 25, but the province was determined to forge ahead.
Restaurants Canada is gathering information to help you implement the new pension plan when it is introduced. Watch for it in the near future! In the meantime, talk to your accountant to be sure you’ll be ready.
Thank you to all of our members who added their voices to our campaign. Let’s keep working together to grow our industry, create jobs and serve communities across Ontario.
Restaurants Canada members: If you have questions about the Ontario Retirement Pension Plan or other labour issues, please contact Paul McKay on our Member Services Team: 1-800-387-5649 ext. 4225 or firstname.lastname@example.org
Not a member? Join online now, or call our membership team at 1-800-387-5649.
We’re stronger together!