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

Elkford councillor Joe Zarowny remembered

The District of Elkford today announced the passing of long time councillor,… Continue reading

‘Police are ready’ for legal pot, say Canadian chiefs

But Canadians won’t see major policing changes as pot becomes legal

Fernie arena tragedy “wake up call” for global refrigeration industry

Technical Safety BC’s incident report shared across 60 countries, reaching as far as Poland

Lake Koocanusa under the microscope

Wildsight, Sierra Club BC, Headwaters Montana and U.S. university launch water sampling program

Province offers support ahead of Fernie arena tragedy anniversary

Loss of three men in workplace incident motivates Labour Minister to make B.C. safer

Naked man jumping into Toronto shark tank a ‘premeditated’ stunt: official

The man swam in a tank at Ripley’s Aquarium of Canada

Meet the City of Fernie candidates

Voters in Fernie will vote for one Mayor, six Councillors and one School Board Trustee on October 20

Meet the District of Sparwood candidates

Voters in Sparwood will vote for one Mayor and six Councillors on October 20

Meet the District of Elkford candidates

The Elkford Chamber of Commerce will host an All Candidates Forum on October 4

Transport Canada to take new look at rules, research on school bus seatbelts

Canada doesn’t currently require seatbelts on school buses

Sockeye run in Shuswap expected to be close to 2014 numbers

Salute to the Sockeye on Adams River continues until Sunday, Oct. 21 at 4 p.m.

Michelle Mungall’s baby first in B.C. legislature chamber

B.C. energy minister praises support of staff, fellow MLAs

Canucks: Pettersson in concussion protocol, Beagle out with broken forearm

Head coach Travis Green called the hit ‘a dirty play’

5 tips for talking to your kids about cannabis

Health officials recommend sharing a harm reduction-related message.

Most Read