CLHIA Submission on Ontario Retirement Pension Plan: Key Design QuestionsRelease Date: 02/13/2015 Staff Reference: Leslie Byrnes
February 13, 2015
The Honourable Mitzie Hunter
Associate Minister of Finance (Ontario Retirement Pension Plan)
Ministry of Finance
6th Floor, Frost Building South
7 Queen's Park Crescent
Toronto, Ontario M7A 1Y7
Please find enclosed a submission from the Canadian Life and health Insurance Association (CLHIA) providing input to your consultation paper, "Ontario Retirement Pension Plan: Key Design Questions".
Established in 1894, the Canadian Life and Health Insurance Association (CLHIA) is a voluntary trade association that represents the collective interests of its member life and health insurers. Our members account for 99 per cent of the life and health insurance in force in Canada, and contribute to the financial well-being of Canadians by providing a wide range of financial security products such as life insurance, annuities and supplementary health insurance to about 28 million Canadians. About two-thirds of Canada's pension plans, primarily Defined Contribution plans for small and medium-size businesses, are administered by life and health insurers. Within Ontario, life insurance companies administer over 18,000 workplace retirement plans for over 2.2 million workers.
The life and health insurance industry strongly urges the government to reconsider several of the key design elements of the ORPP in order to better promote the retirement income prospects of Ontario workers. As currently proposed, the ORPP would destabilize existing successful programs, force over-saving on low-income Ontarians and those already on track for retirement, and undermine the PRPP before it has even been implemented, to the detriment of small business and the self-employed. We believe that it will introduce unnecessary burdens on business, taxpayers and the economy.
We appreciate the opportunity to comment and remain at the disposal of you or your staff should you wish additional information.
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