Business pushing back on CPP expansion

B.C. stands in the way of Justin Trudeau government's plan to hike Canada Pension Plan contributions, but likely not for long

Jordan Bateman

The B.C. government is hearing objections from businesses and individuals faced with increasing Canada Pension Plan contributions in the coming years, and is the last province needed to ratify the increase.

Instead of joining other provinces in meeting the federal government’s July deadline to adopt the change, the B.C. government launched a consultation phase expected to run through August. And they are getting push-back on a plan that would increase payroll deductions and employer contributions starting in 2019.

Jordan Bateman, B.C. director of the Canadian Taxpayers’ Federation, said he’s receiving hundreds of responses to his call to supporters to make their views known to the B.C. government. Most concerned are employers who would pay higher contributions for each of their employees.

Employer and employee contributions are to go up from the current 4.95 per cent of earnings to 5.95 per cent by 2023. For each employee earning $54,900, the employer contribution goes up $7 to $8 per month in each of the first five years of the phase-in.

“Obviously, lots of people are concerned about having to pay more,” Bateman said. “But the interesting ones are the small business owners who talk about just how close to the edge they are financially.”

B.C. Finance Minister Mike de Jong joined other provinces in agreeing in principle to the expansion in June. Federal Finance Minister Bill Morneau said he is concerned about the decline in workplace pension plans and wants the CPP to move from replacing one quarter of employment income to one third by 2025.

The Canadian Federation of Independent Business surveyed its members nation-wide when the CPP plan was announced, and more than 80 per cent wanted consultation and a delay of implementation. Morneau has indicated he plans to table legislation this fall.

B.C.’s refusal to sign on could derail the federal plan, but it shows little intention of doing so.

“British Columbia is committed to engaging with stakeholders in advance of ratifying the agreement in principle,” said the statement from de Jong’s office announcing the consultation.

The province’s consultation website and feedback address can be found here.

 

Just Posted

Saanich Police: most common road safety reports are motor vehicle collisions

Police department also hears a “tremendous” amount of complaints from the public about bad driving

Sidney has highest walk-in clinic wait times in the country: report

Several Vancouver Island facilities wait times notably poor

Search underway as Our Place Society CEO Don Evans resigns

‘It’s time for me to take a break to recharge my batteries’

Victoria shuttle service aims to use cruise ship waste as fuel

Pacific Northwest Transportation Services wants to have a zero emission fleet by 2026

VIDEO: Harbour Air makes history with first electric aircraft test flight

Successful flight marks first of its kind in the world

Thunberg ‘a bit surprised’ to be Time ‘Person of the Year’

‘I could never have imagined anything like that happening,’ she said in a phone interview

Greater Victoria wanted list for the week of Dec. 10

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: Do you have a real or artificial Christmas tree?

The lights are up, holiday shoppers are bustling through the streets and… Continue reading

Toronto Raptors, Don Cherry top the list of Canadians’ Google searches in 2019

‘Champions’ was the theme of the last year, Google said

UPDATED: No survivors in Gabriola Island plane crash: RCMP

Coroner confirms multiple fatalities after small plane goes down Tuesday night near Nanaimo

The Grinch who Stole a Hedge: Security camera captures Chilliwack tree theft

RCMP arrives as person calmly walks away with tree in downtown area

Tavares scores twice as Maple Leafs earn 4-1 win over Canucks

Vancouver sees two-game win streak snapped

The Russell Troupe finds a comfort zone in small Island community

Family gathering with two parents and five kids a common scene around Chemainus

Most Read