Manufacturing group pushes for delay in Ontario Retirement Pension Plan

A group representing manufacturers and exporters wants theOntario government to halt implementation of its new provincial pension planuntil a federal review of the Canada Pension Plan is completed.

TheCanadian Manufacturers & Exporters said Tuesday that the costs of administering the Ontario Retirement Pension Plan can be avoided by working with Ottawa on a national approach to retirement income security.

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"Manufacturers play a key role in ensuring the strength of the Ontario economy,"said Ian Howcroft, Ontario vice-president at CME. "These changes need to make sense for them."

Howcroft said mandatory cost increases put manufacturers at a competitive disadvantage.

"Employers already offering pension plans should be exempt from further increases associated with either an ORPP or a CPP change," he said.

In February, theOntario government said it waspushing back the rollout dates for the ORPPtogive largerbusinesses more time to enrol.

The new provincial planwould cover some threemillionOntarianswho don't haveworkplace pensions.

Workers at large companies (with 500 or more employees) were scheduled to start contributing inJanuary 2017, butcontributions now won't begin until 2018.

At the same Ontario made that announcement, federal Finance Minister Bill Morneau said he hopes to introduce an enhancement to the CPP before the end of 2016.

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