The ORPP Will Cost Ontario

You wanted this, Ontario Liberal voters:

Introduced in the Liberal government’s 2014 budget, Finance Minister Charles Sousa and his associate, Mitzie Hunter — who has responsibility for ORPP — released a “Cost Benefit Analysis,” from the Conference Board of Canada shortly before Christmas.

In a news release accompanying the report, Hunter glowingly enthuses over its allegedly rosy projections. Did I mention the report was commissioned and paid for by the Ministry of Finance?

“While the report acknowledges there will be a small short-term impact to the economy, it also shows that real disposable income will be $19.4 billion higher and real GDP will increase by $9.6 billion over the long term under the ORPP,” Hunter said in the statement released Dec. 22.

So what did the report actually say?

Take a look:

“The increase in mandatory savings through the ORPP initially results in a period of reduced household spending as contributions to the ORPP lower household income.”

When does all the good news kick in? Well, don’t hold your breath. It’s 75 years from now.

From the report: “By 2045, real disposable income in Ontario is higher than it would have been without the ORPP. Retirees spend the additional income from the ORPP benefits, which leads to rising economic activity. In 2093, real disposable income is $19.4 billion — or 1.2% — higher than it would be without the ORPP.”

So there’s good news and bad news on the ORPP. The good news is that it will be a boost to the economy. The bad news is that most of us will be dead by the time it happens.

In the meantime, employees will have their take-home pay reduced and employers will have to find matching funds — as much as $1,074 per employee per year.

  • DMB

    Ontario will be long bankrupt by then and it would not be able to pay the full amount promised by that date.

    • terrence

      You beat me to it, DMB.

      But the union goons and bureaucrats will continue to vote for the LIEberals

    • Bataviawillem

      Comparable private plans will pay full amount and are an option.

      • DMB

        Probably why Justin lowered the TFSA contribution limit from $10,000 a year to $5,500. To decrease the opportunity for Canadians to adequately save for retirement by relying on government “savings plans” such as the ORPP and even CPP. What the government should have done was not only cancel the planned ORPP but allow Canadians to opt out of CPP contributions and be able to transfer their CPP contributions to a private pension plan i.e. RRSP, TFSA and return the TFSA limit to $10,000.

        • There are very few people Trudeau can milk for cash. He will turn to seniors, the very ones who voted for him.

          Boy, will they be pleased to know that he is screwing them out of their golden nest egg cash?

          • DMB

            I hope he turns to public sector workers who also voted Liberals as well. It will be interesting to see them go to Wynne demanding yet another pay raise to be able to pay for Justin potentially screwing them over and have the public sector unions and province once again publicly battle it out only for Wynne to cave in to their demands as usual.

          • It will be beautiful to watch.

          • Alain

            I certainly did not vote for him or his party and never would. Also the seniors I know did not vote for him or his party, but I admit that we may only be a small number.

          • The ones who did cannot rely on their snowbird status to save them.

          • Fred Ducque

            When they find out that their necessary medicines are denied because of a cost/benefit calculation, they will see how the books are balanced.

          • Oh well….

  • Physics grad


    “In the meantime, employees will have their take-home pay reduced and employers will also have to lay off some employees.”

  • Jaedo Drax

    It’s even worse than at first glance.

    It starts taking contributions in 2017, it starts paying out benefits in 2022.
    Somehow, it’s going to pay out when contributions are less than payouts.
    The static analysis indicates that somehow 75 years from now there is a 1.2% in GDP, but doesn’t mention what the hit in GDP is now.
    It will reduce RRSP contributions now, which will some how be a good thing when saving for the future.

    and that was what I could see by skimming the summary.

    • Gary

      That must be a lie because when it first came out a reporter found out that it can’t be drawn from for 45 years.
      So what the hell happened that is now on 6 years, unless Wynne wants to give it the syrian Muslims refugees for their votes and to help Justin get re-elected.
      That weasel Justin posed with the first wave of refugees that Harper got in from about 2 years ago that finally were cleared . Justin actually had some of them put on Liberal Red coats or tops to be a photo-op shot for the next election to take the credit for Harper’s work.
      These refugees are sponsored while Justin’s will go right onto welfare to suck the system dry and burden Health care since McCallum said that a large number have PTSD .

      Nice, then person next to you at work is a Diversity Quota devout pro-sharia homophobic muslim with PTSD and snaps one day to behead you or come in with a suicide-vest .
      I want to see what CUPE says when these PTSD jew-haters get jobs in the Government knowing that that peaceful women with a new baby shows up at the X-mas party in a Black outfit to slaughter everyone
      and leave bombs behind for the EMS to be killed .

  • Bataviawillem

    The Orpp will be a failure for Kathleen Wynne, every private company that I know plans to opt out and go with a comparable private pension plan.
    It will still cost the same, but she will not get here hands on the money.

    • dance…dancetotheradio

      I didn’t know that was an option.

      • DMB

        If a private company has a private pension plan they are allowed not to opt into the ORPP which many large corporations have. The ORPP is designed to hurt small to medium size private sector businesses with 50 or less employees as well as the people who have to contribute to it.

        • dance…dancetotheradio

          Just like what Notley is doing to farmers in Alberta.

        • Bataviawillem

          Even companies without a pension plan can opt out, and go into a private pension plan.

    • Brett_McS

      Sounds like a ‘loop-hole’ that will need closing. /sarc

  • Jaedo Drax

    in case you want to read the damage yourself.

  • Clear Thinker

    It is a simple thing, the libs want a pool of cash that wont be demanded back for 40 years. They will then take this money and give to their friends. Luckily I will not have this applied to me and with my hydro stock, I will leave Ontario and strip the poor consumers in Ontario of their cash to pay me my dividends well into my properly earned retirement.

  • Waffle

    Doncha just love that Liberal math? Sorry, sheeples — no Freedom 55 for you, just slavery for eternity. Serves you right for voting Lieberal for the last 12 years. But the saving grace is that the grandchildren you will never have will have “clean” air.

  • mauser 98

    and Premier Strapon may win the next election

  • andycanuck

    I’m hoping it badly screws a very-pro-union but libertarian buddy of mine. (I’m screwed already, so I don’t care.)