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

Gitdumden checkpoint blocks access to Unist’ot’en camp

Wet’suwet’en clan members say Morice Lake Forest Service Rd checkpoint in effect until further notice.

Regional unemployment rate drops

But fewer people are working overall

Horizon North construction to start soon

The first gear will start rolling into Kitimat at the beginning of 2019

Haisla yet to sign LNG benefits deals with the province

Other First Nations already receiving cash payments

Area First Nations benefit from LNG Canada project

Agreements with province provide cash, land

VIDEO: Ex-NASA engineer pranks mail thieves with glitter bomb trap

Package thefts are common this time of year, but YouTuber Mark Rober used his engineering skills

FortisBC says you can return to normal gas use following pipeline fire

Utility says increased pipeline capacity, warmer weather have allowed supply to reach normal levels

CSIS collected info on peaceful groups, but only in pursuit of threats: watchdog

Security Intelligence Review Committee says fears unjustified after reviewing evidence, testimony

Canada ranks 16th on annual gender gap list

This is the second year Canada has placed 16th in the World Economic Forum’s list

VIDEO: Tornado rips through city west of Seattle

Reports indicate five to seven homes damaged in Port Orchard, Wash.

Trial date postponed for man charged with killing Abbotsford police officer

Oscar Arfmann’s trial pushed back from January to May 2019

Privacy watchdog says legal cannabis buyers should use cash, not credit

Some countries could bar entry to individuals if they know they have purchased cannabis

‘A start:’ Alberta critical of Ottawa’s $1.6B package for ailing energy sector

A further $150 million is to be used for clean growth and infrastructure projects

New B.C. Lions coach DeVone Claybrooks adds eight to coaching staff

DeVone Claybrooks has filled out his staff for the 2019 season

Most Read