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L ast week's provincial budget introduced a new Ontario pension plan that would augment what is paid by the federal government via the Canada Pension Plan (CPP). The high-spending budget failed to get NDP approval so the Liberal government has to defend it in a provincial election, saying it would re-introduce the budget if it wins the election. The Ontario pension will only apply to half of the six million workers in our province. Excluded are those who have existing employment pension plans and all workers in federally-regulated industries including banking, transportation and telecommunications. The idea is a good one, but it seems to be confusing and an administrative mess. It is an extension of the existing federal CPP . If it becomes law, in my opinion, it will most likely be merged into that federal plan within the next ve years. Several provinces have been talking about this additional pension idea. The federal government wanted to delay the plan to allow the recovering Canadian economy more time to heal following the recent world recession before imposing additional pension costs on employers/employees. Ontario had threatened to go it alone if there was a federal government delay. That is what happened last week. This new Ontario pension plan comes in two parts. The Ontario Retirement Pension Plan is aimed at the middle-income workers who are at the greatest risk of having insuf cient income during retirement. They will contribute 1.9 per cent of their income to a maximum of $90,000. Employers will match that contribution. It is a forced sav- The Ontario Liberals' new pension idea good, but administratively inefficient Dollars & Sense Guest Contributor 19 | Thursday, May 8, 2014 | OAKVILLE BEAVER | www.insideHALTON.com Peter Watson ings plan similar to the CPP . A new management position was introduced for this pension plan. The second new initiative is the Pooled Registered Pension Plan. This is a voluntary plan that companies and employees can opt to participate in and would be administered by private investment rms. The new Ontario pension plan would begin in 2017 and be implemented over a two-year period. There are many facets to these two new programs. Most importantly, does it serve the individuals targeted? The answer is yes. The greatest nancial fear for those older than age 50, and for many younger, is not having enough income during retirement. Everyone knows how long and expensive life can be. Most are worried about not being able to afford their desired lifestyle. There is political momentum for governments to implement greater savings. Two other provinces are on the advisory board to design programs and several others have expressed an interest to be involved. All of this is a continuation of talks the provinces had last year concerning raising pension income for Canadians. The holdout seems to be Ottawa. The federal government was not against the idea but against its timing into a fragile economy. So, Ontario has led the way but it has duplicated the structure, governance and implementation of distributing pension bene ts. A good idea but a clumsy effort on the implementation side. In the cruel world of business, inef ciencies, in effort, lead organizations to go out of business. That is the beauty of capitalism. It forces companies to be logical, practical and ef cient. Ontario has launched an excellent idea for increasing pensions. However, the duplication of effort with the federal government is inef cient and a mistake. All governments should not waste taxpayers' money by being inef cient. Ontario should work with other provinces and federal government to introduce the same type of pension enhancements, in a simpler and more cost effective way. -- Submitted by Peter Watson, MBA, CFP , R.F .P ., CIM, FCSI., Certi ed Financial Planner Halton.ca 311 Public Information Centre Construction of a Trunk Wastewater Main on Trafalgar Road (Regional Road 3), Rebecca Street and Lakeshore Road ending at the Oakville Southwest Wastewater Treatment Plant, 1385 Lakeshore Road, Town of Oakville PR-2869 Halton Region is planning to construct a trunk wastewater main on Trafalgar Road, Rebecca Street and Lakeshore Road ending at the Oakville Southwest Wastewater Treatment Plant beginning Fall 2014. A Public Information Centre will be held for residents who want to learn more about the construction project. Please drop in at any time. Halton staff will be available to answer your questions. Date: Time: Place: Wednesday, May 21, 2014 6 to 8 p.m. Oakville Arena, Kinsmen Pine Room 133 Rebecca Street, Oakville If you would like to learn more about the project and are unable to attend the Public Information Centre, please contact: Mark Bajor Project Manager Public Works 905-825-6000 x 7617 Mark.Bajor@halton.ca 080514 Please contact us as soon as possible if you have any accessibility needs at Halton Region events or meetings.