Regular readers of my commentary will know that I am absolutely against the idea of our Federal and Provincial Governments expanding the Canada Pension Plan. I call this Bad Idea #17 and have written about it a couple times (you can read those commentaries here and here) and have a third installment on the way. One reader asked where they can find the entire list of bad ideas. The truth is that I had to keep some open spots in the list because I knew more bad ideas would be forthcoming.
On May 1, 2014, Ontario’s Liberal Government presented its budget which included the Ontario Retirement Pension Plan. I don’t have all the details, not because I didn’t look, but because the government doesn’t have all the details to offer at this stage. Apparently their strategy is to tell you they are doing something and then leave some room to figure out the details later. Sadly, I wish they figured out how ill conceived this idea is in all its details before rushing the news – it will be embarrassing when they have to back track or worse when they push ahead and waste a bunch of taxpayer money (think Ontario gas plants).
I guess the Liberals thought that they had no choice but to go this route after so publicly pushing the Feds and other Provinces to get on board with a CPP expansion and playing the ‘if you don’t do it with us we will do it on our own’ card. I can’t believe that they can’t find a single soul in the Ministry of Finance that can help them understand how complicated this thing is going to be (think gun registry).
The implication is that it will be just like the CPP except:
So – here are problems that mirror the problems that would come with an expanded CPP:
But wait – before you say ‘no sir’ to this proposal, there is more – problems that are unique to Ontario’s super special go-it-alone strategy:
I don’t know what more I can say – someone in the Ontario government is convinced that this is the way to go and either they don’t have anyone around them telling them it isn’t – or they just aren’t listening.