Statement by Charles Sousa, Ontario Minister of Finance, and Indira Naidoo-Harris, Associate Minister of Finance, on the Agreement in Principle to Enhance CPP
Charles Sousa, Ontario Minister of Finance, and Indira Naidoo-Harris, Associate Minister of Finance, have issued the following statement in response to the agreement in principle on Canada Pension Plan (CPP) enhancement at the Federal-Provincial-Territorial Finance Ministers' Meeting in Vancouver:
There is an emerging retirement income challenge in Canada, and in Ontario. Workplace pensions are becoming less common and less adequate. Two-thirds of Ontario workers don't have access to a workplace pension plan, and only one in four younger workers -- aged 25 to 34 -- participate in a workplace pension plan. Too many Ontarians are starting to approach retirement without the pension and savings they need.
Our government ran on and won a majority mandate on a promise to enhance retirement income security for the people of Ontario. Today has seen a national agreement in principle to enhance the CPP that meets our commitment to hard-working Ontarians.
Ontario has always favoured a national solution to strengthening retirement security. Since 2013, we have been calling on the federal government to enhance CPP because a national solution provides many benefits to Ontarians, including portability and cost effectiveness, while providing coverage to more people.
In the absence of a willing or collaborative federal partner at that time, Ontario began establishing the Ontario Retirement Pension Plan (ORPP).
Ontario's extensive consultations in developing the ORPP determined that to meet Ontarians' retirement needs, CPP enhancement would have to be timely and provide a level of adequacy and coverage that reflects the design of the ORPP.
We are very pleased to have reached an agreement in principle to expand the Canada Pension Plan today. Without Ontario's continued leadership and strong support for improved retirement security, there would be no resolution today. Ontario will continue to be a leader as we take the necessary steps to formalize this national agreement. This is yet another example of the progress that can be made when we work together, and we look forward to more opportunities to collaborate with our federal, provincial and territorial counterparts in the future.