Plans for an Ontario Pension Plan will be unveiled by the minority Liberal government this spring, ahead of a widely expected provincial election, Premier Kathleen Wynne announced Tuesday.
The minority Liberal government is worried people are not saving enough for retirement, and is prepared to take action on its own since the federal Conservatives refuse to enhance the Canada Pension Plan, she added.
The federal Conservatives say increasing pension contributions amounts to a job-killing payroll tax, an argument Wynne flatly rejected.
"This is not a tax," she said. "This is an investment in the future that individuals and businesses would be making, and it is a responsible way forward."
Ottawa wants the provinces to support Registered Pooled Pension Plans as an alternative to enhancing the CPP, but Ontario rejected that option because they are voluntary, not mandatory.
Many Canadians do not contribute the full amount to their Retirement Savings Plans each year because they are not forced to do so, said those behind the plan.
Wynne appointed a special panel, headed by former prime minister Paul Martin, to advise the province on how to create a pension plan and whether it would allow people to opt out.
Ontario's New Democrats said not one Liberal voted for an Ontario Retirement Plan when the NDP proposed it in 2010, and accused the government of being good at naming panels, which they called a stalling tactic.
