The New Ontario Pension Plan Really is a Good Idea

The new Ontario Pension Plan really is a good idea.  The Liberal government is intoducing a pension plan system similar to the federal Canada Pension Plan that will give retiring Ontarians more money in their pocket when they retire. What could be wrong with that?

It wasn't all that long ago, perhaps just two generations, that many companies offered pensions to their workers.  These pensions were funded by both the employee and the company, and these deductions were put into pension funds that were managed by the company so that when the employee retired, there was a pension available.  It was not considered a tax, but a benefit provided by the company to entice workers to work for the company.  This money was put into a fund managed by the company and occasionally the fund was mismanaged, embezzeled, or disappeared if the company went bankrupt.  But it was not a tax.

The government even created it's own Canada Pension Plan to help all Canadians with retirement, including those who did not have access to a company pension.  This also is considered a benefit and not a tax.  Retirees, when they apply for CPP do not apply for a CPP tax rebate or refund, but a CPP Benefit.

Many opponents argue that this will hurt business in the province.  In terms of medium to large business, this is simply not true.  Yes it will affect their bottom line, but this is not a new practice for many businesses.  Companies offered pension plans in the past as enticements to employees and it didn't hurt them then.  It is unclear how this will affect small business, but the Provincial government has an obligation not only to seniors but especially to small business to make sure that everybody benefits.

Today it is clear that as more and more seniors retire, there are more of them living on a fixed income at what seems to be a lower level every year.  These seniors have been convinced to tap into their savings and spend, they have been convinced to refinance the houses they actually already owned, and it has become acceptable for the children of seniors to move back in with their parents and tap into their resources, reducing the amount of money seniors will have access to in their retirement.

The Federal government under Stephen Harper claims many programs to help and benefit seniors, but the affect seems to be negligible at best.  More and more seniors are slipping into poverty.  The Provincial government in Ontario is trying to alleviate this problem by introducing an Ontario Pension Plan similar to the Canada Pension Plan, that will put more money in the pockets of seniors when they retire.


Stephen Harper, his government, and the opponents in the provincial legislature all seem to be against this and call it a tax.  Perhaps they have forgotten that business used to do this.  Perhaps they object to the fact that it is being done in a fair and objective manner that will benefit all Ontarians.  Perhaps they object to the fact that it is not business that is controlling the pool of money, but the Ontario Government.  In any case, they cannot see past the fact that it is not a tax, but a benefit, that in the long term will aid Ontarians when they retire.