TEMPLATE: Sample letter from ONN re: Ontario Retirement Pension Plan (ORPP) – Input on Design

Here’s a template that can be easily personalized for your organization, with your own examples that will help explain impact the ORPP would have on your organization:

  1. Add the sample letter to your organization’s letterhead.
  2. Add a description about your organization.
  3. Choose a recommendation (or all 4!) that is relevant to your organization.
  4. Sign it and email to .

Please remember: the deadline is February 13, 2015.

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DATE

The Honourable Mitzie Hunter

Associate Minister of Finance

c/o Budget Secretariat

Frost Building North, 3rd floor

95 Grosvenor Street

Toronto, ON M7A 1Z1

Re: Ontario Retirement Pension Plan (ORPP) – Input on Design

Dear Minister Hunter,

I am writing on behalf of [organization name] in response to your call for input on the design of the Ontario Retirement Pension Plan (ORPP).

[ABOUT MY ORGANIZATION]

Given that the labour market is becoming increasingly characterized by precarious work, low wages, and disappearing pension plans, we are pleased to see the Ontario Government address the issue of income security for the retired workers of Ontario. As a community nonprofit organization, we have particular concerns about how the design of the ORPP will affect our sector. We support the following recommendations:

  1. [ADD RECOMMENDATION(S) HERE]

The introduction of the ORPP has sparked a discussion about how the nonprofit sector can develop a more robust approach to securing the retirement income security of our employees who work to support the public good throughout their careers. We look forward to continuing discussions on how to change the funding environment so that community nonprofits are better enabled to offer high-quality jobs—with living wages, benefits and pensions—in a way that is financially sustainable.

Sincerely,

NAME

TITLE, Organization name

Recommendations for you to choose from:

1.The unique needs and characteristics of the nonprofitsector must be taken into account in designing and implementing the ORPP. We need to use existing labour market information and take steps to fill any data gaps to better understand the impact of the program on nonprofit organizations.

2.Low-income workers should be assistedwith the cost of ORPP premiumsthrough targeted, refundable tax credits or other tax measures. Furthermore, these workers should benefit materially from the program when they retire, rather than having other seniors’ benefits (such as the Guaranteed Income Supplement) clawed back as a consequence of receiving ORPP income.

For example: [If relevant, add your example here from your organization about how low-income workers would be negatively impacted.]

3.Discussions on ORPP implementation in the community nonprofit sector should be placed in the context of the urgent need for reforming the funding relationship between the government and the nonprofit sector. Our organization cannot simply absorb the cost of ORPP employer premiums.

[If your organization receives provincial and or municipal or federal funding:]

At a minimum, transfer payment agreements, grants, and contracts through which we deliver services on your behalf should reflect the increased cost of doing business associated with implementing the ORPP. We would also ask for your support in asking other levels of government to do the same.

The precarity of many jobs in our sector is a consequence of thenonprofit funding environment, where short-term project funding is common. ORPP premiums are only one factor among many that are putting pressure on our financial stabilitywhile we face ourcommunity’s growing needs with fewer resources. We look forward to seeing progress on funding reform for the nonprofit sector so thatcontribution agreements take into account the full cost of doing business while providing high-quality jobs.

For example: [Add your example here about howfunding reform will impact your organization.]

4.We join with the Ontario Nonprofit Network and other sector partners in asking for a joint task force involving the Ontario Government and the nonprofit sector to address ORPP implementation issues on the sector, as well as to explore broader workplace pension opportunities. The ORPP will go some way to reduce the income gap for retired workers, but a gap will still remain for many modest-income workers in our sector who have no workplace pension plan. The time is right to consider options for a sector-wide pension plan to meet the needs of workers innonprofits. The task force could also address gaps in labour market information and the need for financial literacy training among our sector’s staff, boards of directors, and clients.

For example: [Add your example here about what it will mean to your organization to have other pension opportunities.]