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

VIDEO: Olympic medalist teaches swimming in Hope

Brent Hayden fondly remembers local swim meet from his youth

VIDEO: LEGO fundraiser builds playground purse

Inspired families built LEGO creations, helped Silver Creek build playground

PHOTOS: 100 years and counting for Boston Bar school

Boston Bar Elementary-Secondary School celebrates Centennial with a bang

Sunshine Valley songbird releases EP

Fifteen-year-old Ashley Pater has been singing and performing since age 9

Rescue boat theft marks third in 3 years for Agassiz-based SAR team

Eight-metre Spirit of Harrison rescue vessel was stolen Friday night, found Saturday morning

Ottawa proposes restricted pot labels, packages

Packaging will include red stop sign with marijuana leaf and ‘THC’

Pro-Trump protest sign with F-word is OK, court rules

Judges say Ontario man can protest publicly, even using vulgar language

Chilliwack’s Spirit Abreast team searching for new paddlers

As dragon boat season approaches, breast-cancer-focused team holds annual meet and greet

Body of missing Australian woman found in Whistler lake

RCMP say they do not suspect foul play in Allison Raspa’s death

VIDEO: Police officer looking for distracted drivers gets hit by truck

Road safety investigator clipped by trailer while patrolling busy intersection

YVR wants you to help name three new puppies

Say hello to the Vancouver Airport’s new assistance pups

COLUMN: Fundraiser helps Abbotsford family fulfill $100K goal for BC Children’s Hospital

Five years after setting their goal, Team Miracle Maya surpasses their target

Speculation tax causing concern at Cultus Lake, Harrison Hot Springs

Recreational property owners face hefty bill for 2019 for what some call a ‘wealth’ tax

Suspect who attacked autistic man in Ontario could be from B.C.’s south coast: police

29-year-old man was sent to hospital with serious injuries

Most Read