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Natalie Waterman, 86, takes part in an aerobic fitness class at the Orchard Cove retirement community in Canton, Mass., on May 4, 2012.
Natalie Waterman, 86, takes part in an aerobic fitness class at the Orchard Cove retirement community in Canton, Mass., on May 4, 2012.
(Bryce Vickmark/NYT)

Ontario’s pension proposal turns up the heat on feds

Ontario has fired a shot across Ottawa’s bow: Address Canada’s impending retirement crisis, or the province will take action itself. The question is whether Ottawa will feel compelled to take up the challenge.

The Globe and Mail’s Adam Radwanski, citing government sources, reported that the Ontario government is considering creating its own mandatory pension plan in addition to the federal government’s national Canada Pension Plan, unless Ottawa and the provinces can agree to enhance the CPP. Critics say the existing federal plan, which pays a maximum of $12,000 a year to retirees (but on average only $7,000), isn’t nearly adequate to provide financial security to Canada’s pensioners.